PTT Exploration and Production Public Company (PTTEP) Q2 2024 earnings summary

Executive summary

• Q2 2024 net profit reached $653 million, up 25% quarter-over-quarter and 7% year-over-year, driven by higher sales volume and improved operational performance.

• Completed significant transactions, including asset acquisitions and divestitures in Malaysia and the UAE, and increased stakes in Myanmar projects after partner withdrawals.

• Sales volume increased 7% sequentially and 14% year-over-year to 506,709 BOED, with strong contributions from G1/61 and Yadana fields.

• Maintained a strong focus on exploration and production, with a major customer accounting for 67% of segment revenues.

• Major non-operating items included asset write-offs (Oliver), FX effects, and oil price hedging, with adjusted profit from normal operations at $667 million.

Financial highlights

• Total Q2 2024 revenues were $2,412 million, up 9% quarter-over-quarter and 16% year-over-year.

• Revenue for the six months ended 30 June 2024 was $4,606 million, with net profit of $1,177 million.

• EBITDA margin improved to 77% in Q2 2024 from 74% in Q1 2024.

• Basic earnings per share for the period were $0.30, up from $0.28 year-over-year.

• Ending cash as of June 2024 was $3,751 million, with a debt-to-equity ratio of 0.24.

Outlook and guidance

• FY2024 sales volume forecast at ~501 KBOED, with Q3 2024 guidance at ~484 KBOED.

• FY2024 unit cost expected at $28-29/BOE, EBITDA margin guidance at 70-75%.

• Gas price guidance for FY2024 is ~$5.9/MMBTU, assuming Dubai oil price at $80-85/BBL.

• The Group is assessing the impact of Pillar Two global minimum tax legislation in operating countries, though it is not yet effective in Thailand.

• Major project startups include G1/61 full capacity, Abu Dhabi Offshore 2, and Mozambique LNG (targeting 1H2028 for first cargo).