PTT Exploration and Production Public Company Limited (PTTEP) has reported its 2Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;
In 2Q21, PTTEP had net profit of 222 million dollars, an increase of 88 million dollars or 66% from a net profit in 2Q20 of 134 million dollars primarily from an increase in revenue from sales, offset with impact from the change of income tax calculation currency from Thai baht to USD. The net profit for 2Q21 of 222 million dollars can be separated as follows.
The profit from normal operation in 2Q21 was 349 million dollars, an increase of 221 million dollars when compared with a profit in 2Q20 of 128 million dollars, was due to an increase in revenue from sales of 688 million dollars, 36% increase in average sales volume and 21% increase in average selling price.
However, there was an increase in expenses primarily from an increase in income taxes of 267 million dollars mainly from higher profit from projects in Thailand and Oman Block 61 Project regarding a gradual recognition of non-cash income tax expense, together with an increase in depreciation, depletion and amortization of 141 million dollars due to higher sales volume primarily from Oman Block 61 Project acquisition, Bongkot Project, Malaysia Project and Contract 4 Project. In addition, petroleum royalties increased by 59 million dollars in accordance with higher domestic sales.
The loss from non-recurring items in 2Q21 was 127 million dollars, a change of 133 million dollars compared with a profit in 2Q20 of 6 million dollars. The reason was primarily from the change of income tax calculation currency from Thai baht to USD during 2020 which resulted in no such income tax in 2Q21 while there was a recognition of tax saving of 122 million dollars in 2Q20 from the reversal of income taxes relating to changes in foreign exchange rate which were recognized in the prior period for corporate income tax.
In addition, there was an increase in loss on financial instruments of 47 million dollars, primarily from higher loss on oil price hedging instruments due to more upward trend of forward oil price than 2Q20, offset with gain on foreign exchange forward contracts due to the depreciation of Thai baht against USD in this quarter (2Q20: recognized loss due to the appreciation of Thai Baht against USD).
However, there was no recognition of impairment loss on assets this quarter (2Q20: recognized loss of 47 million dollars mainly from Mariana Oil Sands Project).
When compared the average sales volume for 2Q21 to 2Q20 of 327,004 BOED, the average sales volume increased primarily from the acquisition of Oman Block 61 Project in March 2021, Bongkot Project and Contract 4 Project due to higher gas nomination from buyer and Malaysia Project first gas production of Malaysia Block H Project in February 2021. The average selling price in 2Q21 increased to 42.19 USD/BOE (2Q20: 34.97 USD/BOE).