PTT Exploration and Production Public Company Limited (SET: PTTEP) has announced its 2Q24 consolidated financial statement through the Stock Exchange of Thailand as follows;
PTTEP reported a net profit in the dollar terms for 2Q24 at 653 MMUSD. An increase of 43 MMUSD or 7% from a net profit of 610 MMUSD in Q2/2023. The increase was primarily from higher revenue from sales, offset with loss from write-off assets of petroleum retention lease AC/RL12 (Oliver) recognized in Q2/2024.
Meanwhile, depreciation, depletion and amortization increased by 156 MMUSD, primarily from higher sales volume of G1/61 Project and additional completed assets from Zawtika Project and S1 Project, along with operating expenses increased by 63 MMUSD due to lower expenses than provision of B8/32 & 9A Project and Contract 4 Project in Q2/2023, as well as higher expenses from maintenance activity from Malaysia SK309and SK311 Project and Arthit Project. Moreover, income taxes increased by 37 MMUSD mainly from projects in Oman and Algeria due to higher profits.
The loss from non-operating items in Q2/2024 was 14 MMUSD. A change of 39 MMUSD from a profit of 25 MMUSD in Q2/2023, was primarily due to loss from write-off assets of petroleum retention lease AC/RL12 (Oliver), amounting to 30 MMUSD.
In the second quarter of 2024 (Q2/2024), the average Dubai crude oil price was 85.2 USD/barrel, an increase from the previous quarter’s average of 81.3 USD/barrel. This rise was attributed to tight crude oil supply conditions, resulting from the ongoing geopolitical conflicts between Russia and Ukraine, as well as tensions in the Middle East region.
In addition, the OPEC+ members have agreed to extend the voluntary production cut through the third quarter of 2024 (Q3/2024). However, the crude oil demand is expected to decrease due to global economic uncertainties. China is projected to experience uneven economic recovery and may face domestic deflation, while concerns persist over the U.S. economy due to high living costs, which could reduce crude oil demand.
The Dubai crude oil price for 2024 is forecasted to fluctuate in the range of 70-90 USD/barrel, according to PTTEP forecast, supported by an anticipated increase in oil demand due to expected downward interest rates adjustments by the U.S. Federal Reserve (Fed) and the European Central Bank (ECB) in the second half of 2024 (2H/2024), alongside industrial activities in emerging markets, which will positively impact crude oil demand and prices. On the supply side, a tighter crude oil supply is foreseen due to the extended OPEC+ production cuts. However, OPEC+ has indicated that it may gradually adjust production based on market demand conditions.
Additionally, PTTEP announced an interim dividend payment of THB4.50 per share to be paid on 28 August 2024. The ex-dividend date is 13 August 2024.
