PTTEP revealed its operational performance and key progress for the first half of 2024, highlighting its success in expanding strategic investment in Middle East to increase company's petroleum proved reserves immediately. The Board of Directors approved an interim dividend payment at THB 4.50 per share for the period, while the company contributed over THB 30,170 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 PTTEP made significant progress in its E&P business during the first 6-month period of 2024 by acquiring a 10% participating interest in the Ghasha Concession, a sizable natural gas field off the coast of the United Arab Emirates (UAE). This investment immediately adds the company's petroleum reserves, while the proximity of the concession location will benefit the joint development with other nearby exploration projects in which PTTEP has invested. The Ghasha Concession is set to produce approximately 1,500 million standard cubic feet per day (MMSCFD) of gas by 2030. Moreover, the project will capture 1.5 million tonnes per annum (mtpa) of carbon dioxide, as it aims to operate with net zero emissions.
Regarding the technology advancement, PTTEP has launched an "EP Digital Platform" that serves as a digital innovation hub. This platform houses over 65 digital features, developed by the company and in collaboration with business partners. It is designed to support operational activities, including petroleum exploration and production, maintenance, logistics, as well as safety and occupational health. The platform aims to strengthen the company's competitive capabilities, reduce time and costs, and benefit the overall industry in the long run.
PTTEP has also launched the "Subsurface Data for U" initiative to provide universities with geological data from the company's E&P operations. The data covers seismic survey information, well data, and petroleum engineering data. The initiative aims to leverage the capabilities of educational institutions and university students, fostering the development of geological talent for the nation and the E&P industry.
In support of marine conservation and rehabilitation, PTTEP has developed the marine science data platform, or PTTEP Ocean Data Platform, in collaboration with several organizations. This platform represents Thailand's first use of an offshore petroleum platform as a data collection station. It collects meteorological and oceanographic information, monitors microplastic levels in the sea, and identifies aquatic species around the jackets of petroleum platforms. The available ocean science data can serve as key inputs to enhance the effectiveness of ocean conservation and restoration plans.
In terms of progress towards the Net Zero Greenhouse Gas (GHG) Emissions by 2050 target, by the end of the second quarter, PTTEP has reduced accumulated GHG emissions by 3.22 million tonnes of carbon dioxide equivalent, compared to the GHG emissions intensity from 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 utilization, production efficiency improvement, energy efficiency enhancement and renewable energy application.
For the first 6-month financial performance, PTTEP generated a total revenue of THB 166,887 million (equivalent to USD 4,608 million). The average sales volume was at 489,879 barrels of oil equivalent per day (BOED), an increase of approximately 8% compared to the first half of 2023. The major growth was mainly from the ramping up of 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 price. Therefore, PTTEP recorded net profit for the first half of the year at THB 42,660 million (equivalent to USD 1,177 million). The unit cost was at USD 28.6 per barrel of oil equivalent (BOE), while Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) margin stood at 76%.
The approval of an interim dividend payment at THB 4.50 per share
Based on the company's performance, on July 30, 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 August 14, 2024, with the payment scheduled on August 28, 2024.
Contribution over THB 30,170 million for national development
During the first half of 2024, PTTEP paid over THB 30,170 million of income tax, royalties and other remunerations to the government. This strongly supports national development in various areas such as community, education, and research & development (R&D). While the profit sharing from petroleum production in G1/61 and G2/61 Projects, under the Production Sharing Contract (PSC), directly contributes to government revenue for national development.