PTTEP announces first-half performance of 2023
PTTEP unveils its first-half operational performance and key progress achieved as planned, including the increase of natural gas production in G1/61 Project.
Another considerable achievement is a significant step into the development of a sizable green hydrogen project in Oman, paving the way to the expansion into future energy.
The Board of Directors has approved the interim dividend payment at THB 4.25 per share for the period, while the company provides remittance payments of THB 42 billion to support the government's developmental endeavours for the country.
Montri Rawanchaikul, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), said that PTTEP made key progresses in both E&P and new businesses in the first 6-month period of 2023.
The production rate of G1/61 Project (Erawan, Platong, Satun and Funan fields) has been ramped up to reach 400 million cubic feet per day (MMSCFD) at the end of the second quarter as targeted, which will support the state to minimize the impacts on the energy cost.
The drilling activities of more production wells are ongoing, while, the additional 4 wellhead platforms will be installed within this year to further hike gas output to 800 MMSCFD by April 2024 as committed in the Production Sharing Contract (PSC).
PTTEP also won the new exploration blocks in the Gulf of Thailand - Block G1/65 and Block G3/65 offered in the 24th Thailand Petroleum Bidding Round.
If the natural resources are successfully discovered, the proximity of these two blocks to PTTEP's existing projects can potentially speed up the field development. This will contribute to the economic development and long-term benefits to the country.
During the period, PTTEP has started to expand into the new form of energy by partnering with 5 world-renowned companies to win the concession block called Block Z1-02, a large-scale green hydrogen project located in the Sultanate of Oman.
The project is expected to commence production in 2030 with a targeted green hydrogen capacity of approximately 220,000 tons per year. This marks the company's first stepping stone to the clean energy business, part of its pathway to becoming a low-carbon organization and fostering sustainable growth.
Regarding the progress on the Net Zero Greenhouse Gas Emissions by 2050 target, PTTEP to date could mitigate cumulative GHG emissions by approximately 1.9 million tons of carbon dioxide equivalent from the base year 2020.
This was achieved through lower-carbon E&P portfolio management, production well management and various initiatives to reduce GHG emissions such as flare gas recovery and utilization, production efficiency improvement, energy efficiency enhancement and renewable energy application.
On the first 6-month financial performance, PTTEP generated a total revenue of US$ 4.359 billion (equivalent to THB 148.932 billion). The average sales volume was at 452,799 barrels of oil equivalent per day (BOED), slightly increased from 446,519 BOED in the same period of last year.
The major contribution was from domestic projects including G1/61, Arthit and the Malaysia-Thailand Joint Development Area (MTJDA). The average selling price, however, was reported the decline as a result of a fall in global crude price.
Therefore, PTTEP recorded a net profit for the first half of the year of US$ 1.180 billion (equivalent to THB 40.321 billion). The unit cost was maintained at US$ 26.24 per barrel of oil equivalent (BOE), while the Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) margin stood at 75%.
The approval of an interim dividend payment at THB 4.25 per share
Based on the company's performance, on July 31, 2023, the Board of Directors approved the interim dividend payment for the first six-month operating results at THB 4.25 per share. The record date to entitle rightful shareholders who may receive the dividend will be on August 16, 2023, and the payment date will be on August 29, 2023.
Remittance payments of THB 42 billion for country development
In the first half of 2023, PTTEP paid approximately THB 42 billion of income tax, royalties, and other remunerations to the government. This strongly supports national development in various areas such as community, education, and research & development (R&D) funds.
