PTTEP’s 1Q23 Profit Jumps 79% to US$569 Million; Sales Volume Expected to Reach 437,000 Bpd in 2Q

PTT Exploration and Production Public Company Limited (SET: PTTEP) has announced its 1Q23 financial statement through the Stock Exchange of Thailand as follows;

Year 1Q23 1Q22
Net Profit (Loss)
Million USD
569 318
Earning Per Share
0.14 0.08
% Change 79

In 1Q23, PTTEP had a net profit of US$569 million. An increase of US$251 million or 79% from net profit in 1Q22 of US$318 million, mainly due to higher revenue from sales in the quarter while massive loss from oil price hedging instruments was recognized in 1Q22. 

The profit from normal operation for the first period was US$592 million. An increase of US$22 million from profit in 1Q22 of US$570 million, was primarily from an increase in revenue from sales of US$163 million from higher average sales volume while average selling price decreased. However, operating expenses increased by US$163 million, offset with depreciation, depletion and amortization decreased by US$25 million primarily from non-cash accounting transactions at the end of concession of the Bongkot Project.

The loss from non-operating items in 1Q23 was US$23 million. A decrease of US$229 million from loss in 1Q22 of US$252 million, largely from gain from oil price hedging instruments of US$1 million (included unrealized gain from mark-to-market of US$5 million) due to a downward trend of forward oil price, while loss of US$240 million was recognized in 1Q22 (included unrealized loss from mark to-market of US$195 million) due to a strong upward trend of forward oil price.

On a quarterly basis, the net profit increased by 36% from 4Q22’s net profit of $417 million, despite lower revenue, as a result of an impairment loss on assets and provision for the Class Action settlement from the Montara incident recognized in the prior quarter but not in the current quarter.

PTTEP expects the average sales volume for the second quarter and full year 2023 to be approximately 437,000 and 456,000 barrels of oil equivalent per day, respectively. Sales volume is expected to decline in 2023, compared to the previous year, as a result of lower sales volume from overseas projects.