Montri Rawanchaikul, Chief Executive Officer of PTT Exploration and Production Public Company Limited (SET: PTTEP), stated at the 2026 Annual General Meeting of Shareholders on March 30 that the current conflict in the Middle East between the U.S.-Israel and Iran has not affected PTTEP’s investment in the region.
At present, the company invests in two countries: the United Arab Emirates (UAE), where it is conducting exploration projects in preparation for production without any commercial production yet, thus posing no impact on operations. PTTEP prioritizes employee safety and has relocated personnel to safe areas. In Oman, it operates an onshore production project, with production continuing as usual. Regarding currency risk, the company has not been directly affected and has already managed some risks.
For volatile crude oil prices in 2026, the company has a risk management policy to protect its cash flow and operational profit. Currently, PTTEP is considering hedging covering approximately 13% of its 2026 production target and will consider additional hedging as the situation evolves.
PTTEP’s revenue structure is divided into 70% from the production and sale of natural gas, and 30% from oil and condensate production. The latter portion may be somewhat affected, but the company has hedged against this.
Domestically, PTTEP is preparing to support the energy ministry’s policy for continuity in petroleum production and energy security. The company will maximize natural gas production in the Gulf of Thailand and consider adjusting maintenance plans for gas fields to minimize the impact on the public and industrial sector. Additionally, the company is preparing to adjust its investment plan to accommodate future changes.
The meeting approved the dividend payment for the second half of 2025 at the rate of THB 4.65 per share, scheduled for payment on April 22, 2026. PTTEP has already paid an interim dividend for the first half of 2025 at THB 4.10 per share on August 22, 2025.
Montri further stated that in 2026, the company expects an average petroleum sales volume of 560,000 barrels oil equivalent per day, up 10% from the previous year, due to the recognition of production from mergers and acquisitions (M&A) in 2025 and full-year capacity recognition, as well as increased demand for gas from the Gulf of Thailand. Gas buyers do not have major maintenance shutdown plans, and the company aims to maintain the average unit cost at $30 per barrel of oil equivalent for 2026.
For the 5-year investment plan (2026-2030), PTTEP allocated a total budget of $33,279 million (about THB 1,089,887 million). Of this, 64% will be used to increase natural gas production capacity to maintain national energy security, as gas in the Gulf of Thailand is expected to drop by 10%. The remaining 36% will support overseas investment projects for company growth.
Globlex Securities has set a PTTEP target price at THB 190, viewing it as benefiting from increased sales volume from new sources and tight supply.
