With Thailand’s leading oil and gas explorer continuing to halt its investment plan in the Myanmar-based Gas to Power project, Daol Securities (Thailand) has maintained a neutral view on PTT Exploration and Production Pcl. (SET:PTTEP).
Daol analysts stated that PTTEP’s decision to postpone any investment in Myanmar was in line with their expectations, and that they had maintained a “HOLD” rating on PTTEP’s stock with a target price of THB190.
PTTEP’s decision to postpone an investment in the Gas to Power (G2P) project was significantly linked to the ongoing political turmoil in Myanmar.
PTTEP’s earnings in 4Q22 are expected to be THB10.3 billion (-4% YoY, -58% QoQ), according to Daol. The quarter’s steep drop was fueled by a lower average selling price (ASP), while unit cost was increased. PTTEP also has a one-time expense and a US$129 million compensation to Indonesian seaweed growers, as well as a projected loss from amortization.
