Thailand: PTTEP 3Q Profit Down

Thailand: PTTEP 3Q Profit Down

PTT Exploration and Production Public Company Limited (PTTEP) had an operating result of the third quarter of this year close to the result of the previous quarter. The company made due preparations to deliver first natural gas from Bongkot South Field and crude oil from Montara Field next year while an increase of crude oil production from Vietnam 16-1 Project met the target.

PTTEP President and CEO, Mr. Anon Sirisaengtaksin (อนนต์ สิริแสงทักษิณ), touching on the operating result for the third quarter of 2011, said that the company and its subsidiaries posted a net profit of USD 250 million (equivalent to 7,450 million baht), a decrease of USD 120 million or 32% compared to its net profit of USD 370 million (equivalent to 11,170 million baht) posted in the second quarter of this year.

For the result from operations in this quarter, the company and its subsidiaries incurred recurring net profit of USD 428 million, an increase of USD 26 million against the last quarter of USD 402 million. The loss from non-recurring items of USD 178 million was mainly due to unrealized loss on foreign exchange rate from USD loan between PTTEP and its subsidiary, PTTEP Canada Limited. These resulted in the net profit of USD 250 million.

Mr. Anon added that the company operating results were closely to the previous quarter. A decrease of net profit in this quarter was mainly due to the loss of foreign exchange resulted from the weak of Canadian dollar compared to USD. But it was no effect to cash.

For this quarter, the total revenue of PTTEP and its subsidiaries was USD 1,422 million (equivalent to 42,837 million baht), a decrease of USD 65 million or 4% compared to the revenue of USD 1,487 million (equivalent to 45,012 million baht) posted in the previous quarter. The sales volume decreased to 264,961 barrels of oil equivalent per day (BOED) compared to the previous quarter’s total sales volume 273,310 BOED. This decrease was the result of lower sales volume of natural gas and condensate from Arthit, Arthit North and Bongkot projects. However, a sales volume of natural gas and condensate from the MTJDA-B17 Project and a sales volume of diluted bitumen from Canada Oil Sands KKD Project increased. In addition, the higher average petroleum sales price this quarter went down to USD 55.37 per barrel of oil equivalent (BOE) compared to the previous quarter’s price of USD 56.28 per BOE.

One of the key progresses in the third quarter was the Bongkot South Field in the Gulf of Thailand. The central processing platform and living quarter platform have been installed successfully while the hook-up and commissioning offshore activities are currently ongoing. The production start up of natural gas at 320 million standard cubic feet per day is expected by the first half of 2012. Another was the development of Montara Field progressing as planned. The expected initial production is still maintained in 2012 as well.

Vietnam 16-1 Project which commenced crude oil production in August this year has increased the average production rate to 31,000 BPD. The production is expected to reach approximately 40,000 BPD by the end of 2011.

Source:PTTEP , October 27, 2011