Analysts are positive on the momentum of PTT Exploration and Production Public Company Limited (SET: PTTEP) following the earnings results last Friday that showed a 37.52% YoY decline in net profit for its 2Q25 performance to $408 million.
DBS Vickers analysts maintained a ‘Buy’ on PTTEP, despite the company’s second-quarter net profit tumbling to THB 13.15 billion—a 44% year-on-year and 18% quarter-on-quarter decline (in Thai Baht term). The drop was attributed to softer average selling prices, elevated production costs per unit, and a notable impairment loss. The average selling price retreated to USD 44.01 per barrel of oil equivalent, down 6% from a year earlier amid global oil price weakness.
Looking forward, DBS forecasts stronger core operations in PTTEP’s third quarter, driven by a rebound in oil prices and the positive impact of acquiring a 50% stake in the MTJDA Block A18. DBS reiterated its ‘Buy’ rating and maintained a 2025 target price of THB 169 per share.
Kiatnakin Phatra Securities (KKPS) viewed the acquisition in MTJDA Block A18 as positive, believing that the company has more changes to acquire Chevron/Hess assets in Southeast Asia, which could be on offer as part of Chevron’s divestment program. The securities firm reiterated its ‘BUY’ rating on attractive valuation and high dividend yield, setting a target price at THB 161.00 per share.
Maybank Thailand reported that PTTEP’s acquisition of a 50% stake in the MTJDA Block A18 for USD 450 million is poised to enhance the company’s production profile by 17,000 barrels of oil equivalent per day—about 3% of its projected output between 2026 and 2032. The extension of the expiring concession will allow continued exploration of untapped potential in adjacent areas, possibly leading to additional resource discoveries.
Maybank noted PTTEP booked a second-quarter net profit of THB 13.5 billion, down 44% year-on-year and 16% quarter-on-quarter, roughly in line with consensus estimates. Sales volume came in at 505,000 barrels per day, flat from the prior year, but up 4% sequentially, reflecting operational normalization in the Gulf of Thailand. PTTEP also declared an interim dividend of THB 4.10 per share, giving a 3.5% yield, with the ex-dividend date set for August 8, 2025.
Analysts at Krungsri Securities highlighted a robust rebound in global crude prices, with Brent edging 2.34% higher at USD 70.04 per barrel and WTI rising 2.38% to USD 66.71 on Monday’s session. Positive developments include the US-European agreement to reduce tariffs on European imports to 15%, as well as concerns over sanctions against Russia. These factors are bolstering sentiment toward oil and gas stocks, particularly PTT and PTTEP, suggesting a favorable trading environment for Thailand’s energy sector.
