PTTEP Reports 8% Decline in 1Q24 Earnings, Expecting Sales to Recover in 2Q24 Onward

PTT Exploration and Production Public Company Limited (SET: PTTEP) has announced its 1Q24 consolidated financial statement through the Stock Exchange of Thailand on Thursday with a slight decrease in net profit, but remains bullish on the recovery in the second quarter and 2024.


Key highlights for 1Q24 performance:

Net Profit: PTTEP recorded a net profit of $524 million in the first quarter of 2024, an 8% decrease from $569 million in the first quarter of 2023. The decrease in net profit is mainly due to lower sales revenue and increased depreciation, depletion and amortization.

Operating Expenses: The company’s operating expenses decreased mainly due to non-cash accounting transactions at the conclusion of its concession on the Bongkot Project in the first quarter of 2023.

Profit from Normal Operations: The first quarter profit from normal operations decreased by $49 million to $543 million from $592 million in 1Q23 mainly due to a decrease in sales revenue of $100 million because of a lower average selling price.

Sales Volume: The average sales volume increased by 3% to 460,817 BOED due to increased natural gas production from the G1/61 Project.

Selling Price: The average selling price decreased by 6% to $47.24 USD/BOE.


Outlook for the Second Quarter and Full Year 2024:
Sales Volume: PTTEP expects the average sales volume to increase to approximately 514,000 and 509,000 barrels of oil equivalent per day in the second quarter and full year, respectively, due to an increase in sales volume from Thailand.

Gas Price: The average gas price is expected to be approximately $5.9 USD/MMBTU, slightly lower compared to the previous year.

Unit Cost: The company expects the unit cost to be slightly higher mainly due to higher depreciation and higher operating expense per unit.