Bangkok, January 28, 2021– PTTEP announced operating profits for the year 2020 and key business expansion achievements despite the volatility of global crude oil price and the COVID-19 pandemic, with dividend payment approved for 2020 at THB 4.25 per share. The company targets sales volume in 2021 to increase by 6% and continues to expand business in the focused areas according to our strategy.

 

 

Mr. Phongsthorn Thavisin, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), said that the company generated total revenue of year 2020 at USD 5,357 million (equivalent to THB 167,418 million), decreasing by 16% compared to USD 6,413 million (equivalent to THB 198,822 million) reported in 2019. The key factor was from the drop in an average selling price to USD 38.92 per barrels of oil equivalent (BOE) or 18%, from USD 47.24 per BOE in the year earlier. This was a consequence of the fluctuation of world’s crude oil price due to the declining energy demand from the outbreak of COVID-19. In 2020, the company also recognized extraordinary expenses including impairment losses, primarily from Mariana Oil Sands project in Canada due to the fact that the project is sub-commercial under current forecast of long-term oil price, and Yetagun Project in Myanmar caused by the production plan revision in according to the current potential of the field.

Nonetheless, the average sales volume for the year 2020 was at 354,052 barrels of oil equivalent per day (BOED), compared to 350,651 BOED in 2019. The company also reported oil price hedging gain of USD 112 million (equivalent to THB 3,632 million).

 

Accordingly, PTTEP’s net profit in 2020 reported at USD 720 million (equivalent to THB 22,664 million), dropping by 54% from the previous year of USD 1,569 million (equivalent to THB 48,803 million). However, the unit cost still stood at USD 30.5 per BOE with Earnings before Interest, Taxes, Depreciation and Amortaization (EBITDA) margin of 68%, aligned with the company’s target. The financial position remained solid with USD 3,804 million cash on hand (equivalent to THB 114,261 million).

 

“During 2020, when the oil and gas industry had been through very tough challenges, the oil price war coupled with impacts from the COVID-19 pandemic, PTTEP was also affected from those encounters. However, the company was able to generate profit by adjusting our operational plan, reducing the unit cost for the long term while maintaining our operational effectiveness and achieving business expansions as targeted. These included the Exploration and Production Sharing Agreement awarded for the onshore Block 12 in Oman and a new exploration block - Offshore Block 3 in the United Arab Emirates. Besides, the company was successful in capturing a new business opportunity by receiving an exclusive right to develop the Integrated Domestic Gas to Power Project in Myanmar and scaling up the AI & Robotics Venture (ARV) for an agriculture service platform and subsea engineering services. This year, PTTEP will continuously focus on seeking opportunities in strategic investment areas both in South East Asia and Middle East as well as thriving in new business to create sustainable growth.” Mr. Phongsthorn stated.

 

Approves dividend payment at THB 4.25 per share
Based on the company’s performance, on January 28, 2021, the Board of Directors approved the proposed of 2020 payment to the shareholders at THB 4.25 per share. The interim dividend for the first six-month operating results at THB 1.50 per share was paid on August 28, 2020, while the remaining dividend will be paid at THB 2.75 per share on April 26, 2021, after obtaining approval from the 2021 Annual General Shareholders’ Meeting. The record date of the company’s share registration for the right to receive the dividend is scheduled on March 2, 2021.

 

 

Targets sales volume growth rate in 2021 at 6%
PTTEP has set aside total expenditure at USD 4,196 million (equivalent to THB 132,174 million) for 2021. The key business objectives are to maintain production plateau of the existing projects, accelerate the development of major projects in enhancing production volume and proceed exploration activities for supporting long term growth. The average petroleum sales volume for this year is targeted at 375,000 BOED, an increment of 6% compared to the previous year. Part of the volume addition will be from the production start-up of Algeria Hassi Bir Rekaiz Project and Malaysia Project – Block H.