ENERGY

PTT Exploration and Production Plc (PTTEP), Thailand's biggest petroleum explorer, posted a record net profit of 57.3 billion baht last year on its highest-ever sales volume and increased prices.

Tevin Vongvanich, the president and chief executive, said the PTT Plc subsidiary saw net income surge 26% from 44.8 billion baht in 2011. Revenue totalled 218 billion baht, up by 26% from 2011, he said yesterday in a statement.

Average sales price rose to US$64.86 per barrel of oil equivalent (BOE) from $55.49 in 2011. Sales volume hit a record high of 275,923 BOE a day compared with 265,047 in 2011, on higher output from the Bongkot South field and projects in Vietnam.

"PTTEP has better operating results with increased production volume from several projects including the Sirikit oil field and Vietnam 16-1," said Mr Tevin. "The chance of petroleum discoveries is high, as we successfully discovered 34 out of 54 exploration and appraisal wells.

"Last year, new petroleum discoveries were mostly in Algeria, while we also expanded to East Africa, which is one of the vast gas-rich areas."

Total expense was 119 billion baht, up by 25% from 93.6 billion in 2011. As of Dec 31, consolidated assets totalled 602 billion baht, up from 448 billion a year earlier.

Proven reserves of PTTEP and its units in terms of oil equivalent totalled 901 million barrels. Crude and condensates accounted for 29% and natural gas for 71%.

In mid-December, the company sold 650 million newly issued ordinary shares at 142 baht each. After deducting expenses, PTTEP received proceeds of 91.6 billion baht for repayment of bridge loans and funding for expansion including acquisition activities.

"PTTEP has been invested in many high-potential projects that can serve long-term production," said Mr Tevin. "We also have a strong financial structure with a commitment to continuous and solid growth to supply sustainable energy to Thailand."

PTTEP's major achievements last year included the S1 project's production increase to 35,176 barrels per day.

Internationally, construction of the Zawtika project in Myanmar is more than 60% complete, with natural gas production set to begin next year.

The board has agreed to pay a second-half dividend of three baht a share, bringing the 2012 payment to 5.80 baht.

Shares of PTTEP closed yesterday on the SET at 168.50 baht, up 2.50 baht, in heavy trade worth 1.73 billion baht.