PTTEP eyes 6% annual growth in sales volume

PTT Exploration and Production Plc (PTTEP) expects a compound annual growth rate of 6% for petroleum sales volume during 2020-25, in line with the “expand and execute” business strategy.

Phongsthorn Thavisin, president and chief executive, said PTTEP plans to put a greater focus on execution, which entails maintaining sales volume from existing assets; ensuring smooth operational transitions of recently acquired assets; developing projects to deliver the first production as planned; and accelerating exploration activities of projects in Malaysia and Myanmar for long-term reserve addition.

PTTEP has existing and acquired assets, including the Erawan and Bongkot gas fields in the Gulf of Thailand; Murphy Oil Corporation’s business in Malaysia; Partex Holding’s business in Oman; a new gas discovery in the SK 410B project in Sarawak, Malaysia; and final investment decisions on the Mozambique Area 1 and Algeria Hassi Bir Rekaiz projects.

Mr Phongsthorn said PTTEP has a sustainable development framework in alignment with international practices.

“The framework is structured to drive PTTEP along with the ‘expand and execute’ business strategy, with the three main components including high-performance organisation; governance, risk management and compliance; and stakeholder value creation,” he said.

In 2019, PTTEP reported a record average sales volume of 350,651 barrels of oil equivalent per day (BOED).

PTTEP’s proven reserves rose to 1.14 billion BOED at the end of 2019, resulting in a reserve life (ratio of proven reserves to production) of 7.5 years as targeted.

PTTEP posted 2019 net income of US$1.57 billion, up 40% from the previous year.

“This was mainly driven by higher sales volume as a result of the additional stake in Bongkot and the business acquisitions of both Murphy Oil’s business in Malaysia and Partex Holding’s business in Oman,” Mr Phongsthorn said.

PTTEP’s financial structure remains robust, he said, as reflected in positive cash flows generated from operations of $3.54 billion.

The company’s ebitda (earnings before interest, tax, depreciation and amortisation) margin stood at 71% last year.

As of 2019, PTTEP reported total assets of $22.2 billion, of which $3.02 billion was cash and shortterm investments. Total liabilities were reported at $10.36 billion, of which $3.44 billion was interest-bearing debt.

PTTEP’s debt-to-equity ratio was 0.29.