In its recent analyst meeting following the third quarter performance of PTT Exploration and Production Plc. (SET: PTTEP) in 2025, Kasikorn Securities maintained a neutral outlook on the company. Key decisions and updates were discussed that may shape the company’s strategic direction over the next few years.
The PTTEP Board is set to approve Final Investment Decisions (FID) for several major projects, including Algeria HBR (Phase 2), Myanmar M3, and SK405B in Malaysia. These projects are expected to add to PTTEP’s petroleum reserves, with production targeted to begin around 2028.
PTTEP has also adjusted its sales volume guidance slightly, now expecting sales in the range of 510-515 thousand barrels of oil equivalent per day (kboed), up from the previous 505-510 kboed. This revision follows the acquisition of an additional stake in the JDA A-18 field. Despite this increase, PTTEP has maintained its targets for average gas sales price at $5.8 per MMBtu and unit cost at $30 per barrel.
According to the company, fourth quarter 2025 results should recover, driven by higher sales volumes, lower unit costs, and stable average selling prices—partly due to a higher proportion of oil sales.
The company is currently negotiating a concession extension for the Yadana gas field in Myanmar, with an outcome expected next year. Meanwhile, PTTEP is accelerating development of the M3 field, targeting production capacity of 60 million cubic feet per day (mmcfd), with the entire output to be supplied to Myanmar in an effort to prevent electricity shortages in the country.
On dividends, PTTEP continues to prioritize a high dividend yield. The expected payout ratio is around 50% of net profit, with Kasikorn Securities forecasting a full-year dividend of approximately 8.5 baht per share based on a payout ratio of 56%, equating to a yield of 7.9%.
Given these developments, Kasikorn Securities reiterated its “BUY” recommendation for PTTEP with a target price of 134.0 baht.
