PTTEP announced its operational performance and key achievements for the first half of 2024, highlighting its strategic investment expansion in the Middle East to increase the company’s petroleum proved reserves. The Board of Directors has approved an interim dividend payment of THB 4.50 per share, while the company contributed over THB 30,170 million in royalties and tax to support national development.
Mr Montri Rawanchaikul, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), reported significant progress in its exploration and production (E&P) business during the first six months of 2024. This includes acquiring a 10% interest in the Ghasha Concession, a substantial natural gas field off the coast of the United Arab Emirates (UAE). This investment immediately adds to the company’s petroleum reserves, with the concession's location benefiting joint development with other nearby projects. The Ghasha Concession is expected to produce approximately 1,500 million standard cubic feet per day (MMSCFD) of gas by 2030 and aims to capture 1.5 million tonnes per annum (mtpa) of carbon dioxide, operating with net-zero emissions.
In terms of technological advancement, PTTEP has launched an "EP Digital Platform," serving as a hub for over 65 digital features developed by the company and its partners. This platform supports operational activities, including petroleum exploration and production, maintenance, logistics, and safety and occupational health, aiming to strengthen the company’s competitiveness, reduce time and costs, and benefit the overall industry in the long run.
PTTEP also introduced the "Subsurface Data for U" initiative, providing universities with geological data from its E&P operations. This initiative aims to leverage the capabilities of educational institutions and students, fostering geological talent development for the nation and the E&P industry.
For marine conservation and rehabilitation, PTTEP has developed the PTTEP Ocean Data Platform in collaboration with various organisations. This platform uses an offshore petroleum platform as a data collection station, gathering meteorological and oceanographic information, monitoring microplastic levels, and identifying aquatic species. This ocean science data serves as key input to enhance the effectiveness of ocean conservation and restoration plans.
Concerning progress towards the Net Zero Greenhouse Gas (GHG) Emissions by 2050 target, by the end of the second quarter, PTTEP reduced GHG emissions by 3.22 million tonnes of carbon dioxide equivalent compared to the base year 2020. This was achieved through low-carbon E&P portfolio management, production well management, and various initiatives such as flare gas recovery and utilisation, production efficiency improvement, energy efficiency enhancement, and renewable energy application.
For the first six-month financial performance, PTTEP generated total revenue of THB 166,887 million (equivalent to USD 4,608 million), with an average sales volume of 489,879 barrels of oil equivalent per day (BOED), an increase of approximately 8% compared to the first half of 2023. Major growth was driven by ramping up natural gas production from the G1/61 Project to 800 million cubic feet per day (MMSCFD) as committed in the Production Sharing Contract since late March 2024. However, the average selling price slightly decreased due to lower natural gas prices. PTTEP recorded a net profit for the first half of the year at THB 42,660 million (equivalent to USD 1,177 million). The unit cost was USD 28.6 per barrel of oil equivalent (BOE), with an Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA) margin of 76%.
Approval of Interim Dividend Payment
Based on the company’s performance, on 30 July 2024, the Board of Directors approved the interim dividend payment for the first six-month operating results at THB 4.50 per share. The record date for shareholders eligible to receive the dividend is 14 August 2024, with the payment scheduled for 28 August 2024.
Contribution to National Development
During the first half of 2024, PTTEP paid over THB 30,170 million in income tax, royalties, and other remunerations to the government. This supports national development in various areas such as community, education, and research and development (R&D). Additionally, profit sharing from petroleum production in the G1/61 and G2/61 Projects, under the Production Sharing Contract (PSC), directly contributes to government revenue for national development.
