PTTEP revealed its performance for the first quarter of 2024 with the success on the G1/61 project’s production increase to help minimize the impact of electricity price. The company contributed over THB 7,000 million in terms of royalties and tax to support national development.
Mr. Montri Rawanchaikul, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), said that the key achievement in the first quarter of this year was the increase of natural gas production from the G1/61 project (Erawan, Platong, Satun and Funan fields) to 800 million cubic feet per day (MMSCFD) to alleviate the impact of energy prices. Additional wellhead platforms will be installed with continuous drilling activity of producing wells to sustain production capacity and maintain energy security.
PTTEP also partners with leading educational institutions in Thailand under the “PTTEP Subsurface University Energy Connect” project. The collaborations are aimed at carrying out research studies on geoscience and petroleum engineering, developing professionals in petroleum exploration and production, and exploring potential carbon storage sites. These efforts are parts of driving the development of Carbon Capture and Storage (CCS) towards a low-carbon society. Under this scheme, PTTEP has signed the Memorandum of Understanding (MoU) with Chiang Mai University, Khon Kaen University, Chulalongkorn University, Mahidol University, Kasetsart University, Asian Institute of Technology, Synchrotron Light Research Institute (Public Organization) and Suranaree University of Technology.
In the first quarter, PTTEP received several prestigious awards both domestically and internationally. These include the Global Most Innovative Knowledge Enterprise (MIKE) Award 2023 from its outstanding in innovation and knowledge management. The award presentation was organized by the Institute for Knowledge and Innovation Southeast Asia (IKI-SEA) and took place in Hong Kong. The reforestation project received the Green World Awards 2024 in the Wildlife and Conservation category from The Green Organization hosted in Brazil. PTTEP also won the Thailand Top Company Awards 2024 in the “Exploration and Production of Natural Resources and Public Utilities” category, presented by Business+ magazine.
Regarding the operational performance in the first quarter of 2024, PTTEP generated total revenues of THB 78,812 million (equivalent to USD 2,209 million), decreasing by 8% compared to the fourth quarter of 2023. The softened revenues were from sales volume of 473,048 barrels of oil equivalent per day (BOED), due to lower sales from the overseas projects. The average selling price slightly dropped to USD 47.24 per barrel of oil equivalent (BOE) following a decline in global crude price. Consequently, PTTEP reported net profit at THB 18,683 million (equivalent to USD 524 million). The unit cost was maintained at USD 28.96 per BOE, while Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) margin stood at 74%.
Based on the reported performance, PTTEP paid over THB 7,000 million of income tax, royalties and other remunerations to the government for the first quarter of this year. This strongly supports national development in various areas such as community, education, and research & development (R&D). Furthermore, the profit sharing from petroleum production in G1/61 and G2/61 Projects, under the Production Sharing Contract (PSC), directly contributes to the government.
