PTT Exploration and Production Plc (PTTEP), the SET-listed upstream petroleum company, posted a record net profit of US$349 million (12.1 billion baht) in the first quarter, up from $157 million last year, thanks to rising global oil prices.
President and chief executive Somporn Vongvuthipornchai said the increase in profit was due mainly to the rising average selling price, which was $38 per barrel of oil equivalent (boe), up from $35 last year, improving in line with global crude oil prices.
He said cost efficiency and the strengthening Thai baht were other factors helping boost profits.
"The firm's financial position remains strong. We are ready for future investment and acquisitions as well as bidding on the expiring concession of the natural gas fields in the Gulf of Thailand," said Mr Somporn.
In the first quarter, PTTEP had total revenue of $1.09 billion, up from $1.08 billion in the same period of last year despite the drop in sales volume to 304,108 barrels of oil equivalent per day (boed), compared with 329,858 in the first quarter of 2016.
The fall in sales volume was primarily due to lower sales from its Australian project and the divestment of production assets in Oman.
Unit cost dropped to $27.5 per boe from $28.6 in the same period last year, largely due to a fall in depreciation expenses, in line with investment activities and additional reserves.
PTTEP's total assets in the first quarter came to $19.3 billion, of which total liabilities accounted for $7.8 billion, total interest-bearing debt constituted $2.86 billion and shareholders' equity represented $11.5 billion.
For the firm's business outlook this year, PTTEP expects global oil prices to remain strong, moving in the range of $50-$55 a barrel in the first half, which should lead to rising average sales.
The company will also continue cost-cutting programmes to boost profits.
But average sales volume this year could be in a range of 300,000-310,000 boed -- lower than previously forecast -- given the uncertainty surrounding demand for natural gas from the Gulf of Thailand, which might be affected by low spot liquefied natural gas prices.
To strengthen its long-term production outlook, PTTEP is accelerating the development of key projects, including the Algeria Hassi Bir Rekaiz Project, the Mozambique Rovuma Offshore Area 1 Project and Contract 4 (Ubon Field).
PTTEP shares yesterday closed on the SET at 97.75 baht, up 75 satang, in trade worth 541 million baht.