SET-listed PTT Exploration and Production Plc (PTTEP) posted a net profit of US$372 million for 2016 despite volatile global oil prices.
The result reversed a net loss of $854 million in the previous year.
President and chief executive Somporn Vongvuthipornchai attributes the strong performance to overall professionalism across all areas, from operations and finance to cost management and efficiency.
At the end of 2016, PTTEP had US$4 billion in cash ready to fund its investment plans and invest in new business opportunities for growth, Mr Somporn said.
The company also proposed a dividend payment of 3.25 baht a share for 2016 operations.
Mr Somporn said PTTEP's continued efforts to reset its cost base as a means of coping with price volatility were pursued without any compromise to safety standards and the company's responsibility to the environment and society.
In 2015, the company recorded an impairment loss on assets of $1.4 billion, primarily as a result of the oil price slump. In 2016, an impairment charge of $47 million followed revisions to production plans to reflect the lower resource potential of selected assets.
PTTEP's sales revenue in 2016 totalled $4.34 billion, down from $5.61 billion in 2015, due to a lower average selling price of $35.9 per barrel of oil equivalent (BOE), from $45.29 per BOE in 2015.
Meanwhile, the company's average petroleum sales volume fell slightly from 322,167 barrels of oil equivalent per day (BOED) in 2015 to 319,521 BOED in 2016, partly due to the divestment of the Oman 44 project in the second half of 2016.
The company succeeded in cost reductions together with the initiatives in bond buyback and capital restructuring, bringing the 2016 cost down to $30.46 per BOE, a 20% reduction from 2015.
At the end of 2016, the company's total asset values were at $18.9 billion with cash on hand of $4 billion. Total liabilities of $7.5 billion, which included interest-bearing debt of $2.8 billion and total equity of $11.4 billion.
For 2017, the company will continue to focus on maintaining its production level, especially at core operations in Thailand, with a target average sales volume for the year at 312,000 BOED and unit costs maintained in the range of $30-$31 per BOE.
PTTEP expects crude prices of $50-$60 a barrel in the first half of 2017, supported by Opec and non-Opec production cuts.
Mr Somporn said the oil price volatility is likely to continue, especially in the latter half of 2017, with key factors to look out for being the next phase of Opec moves, US energy policy under the new president and other political factors.
The company's strategy to enhance reserves and grow production will be driven by sanctioning pre-development projects, including Ubon field under Contract 4, Mozambique's Rovuma Offshore Area 1 Project and Algeria's Hassi Bir Rekaiz Project.
Fossil fuels will continue to be a major source of global energy supply with natural gas, even as clean and transitional energy for a lower carbon future play increasingly important roles, Mr Somporn said.
"Considering PTTEP's portfolio, with natural gas accounting for over 60% of our production, and our current strategy to expand jointly with PTT in the LNG business, I am confident that our business direction corresponds well with global energy trend and Thailand's energy supply plan," he said.
PTTEP shares closed yesterday on the Stock Exchange of Thailand at 98.50 baht, up four baht, in heavy trade worth 3.43 billion baht.