PTTEP has unveiled its operational performance and remarkable milestones for the first half of 2024, underscoring its strategic investment expansion across the Middle East to bolster its petroleum proved reserves. In a nod to shareholders, the Board of Directors sanctioned an interim dividend of THB 4.50 per share, meanwhile, the company channeled over THB 30,170 million via royalties and tax contributions to fuel national growth.
Leading the charge, Mr. Montri Rawanchaikul, CEO of PTT Exploration and Production Public Company Limited (PTTEP), highlighted notable strides in the exploration and production (E&P) sector during the first half of 2024. A key highlight was acquiring a 10% stake in the Ghasha Concession, a significant natural gas field off the shores of the United Arab Emirates (UAE). This strategic investment instantly amplifies the company’s petroleum reserves. The Ghasha Concession, positioned for seamless joint development with adjacent projects, is projected to churn out approximately 1,500 million standard cubic feet per day (MMSCFD) of gas by 2030, with a steadfast aim to sequester 1.5 million tonnes per annum (mtpa) of carbon dioxide, operating with net-zero emissions.
On the tech front, PTTEP rolled out an “EP Digital Platform,” a robust hub hosting over 65 digital features crafted by the company and its partners. This cutting-edge platform underpins extensive operational activities, encompassing petroleum exploration and production, maintenance, logistics, as well as safety and occupational health. Its ultimate goal is to augment the company’s competitive edge, minimize operational time and costs, and cultivate enduring benefits for the industry.
In a pioneering educational initiative, PTTEP launched the “Subsurface Data for U” program, endowing universities with comprehensive geological data from its E&P operations. This initiative endeavors to leverage academic expertise and student potential, nurturing the next generation of geological talent vital for the nation and the E&P industry.
Stepping up its commitment to marine conservation, PTTEP developed the innovative PTTEP Ocean Data Platform in tandem with various organizations. Leveraging offshore petroleum platforms as data collection outposts, this platform assimilates meteorological and oceanographic information, monitors microplastic content, and catalogues aquatic species. This invaluable ocean science data plays a crucial role in refining ocean conservation and restoration strategies.
In alignment with its Net Zero Greenhouse Gas (GHG) Emissions by 2050 ambition, by the close of Q2, PTTEP managed to cut GHG emissions by 3.22 million tonnes of carbon dioxide equivalent compared to the baseline year 2020. This impressive feat was realized through shrewd low-carbon E&P portfolio management, astute production well management, and a suite of initiatives such as flare gas recovery, production efficiency enhancement, energy efficiency boosting, and renewable energy adoption.
Financially speaking, PTTEP posted a solid total revenue of THB 166,887 million (roughly USD 4,608 million) for the first six months, with an average sales volume clocking in at 489,879 barrels of oil equivalent per day (BOED), marking an 8% increase over the first half of 2023. This growth was primarily propelled by ramped-up natural gas production from the G1/61 Project to 800 million cubic feet per day (MMSCFD), as pledged under the Production Sharing Contract since March 2024. Despite a slight dip in average selling prices due to softened gas prices, PTTEP clinched a net profit of THB 42,660 million (approx. USD 1,177 million) for the first six months. The unit cost was tallied at USD 28.6 per barrel of oil equivalent (BOE), with an EBITDA margin standing robust at 76%.
Recognizing the stellar performance, the PTTEP Board greenlit the interim dividend payout of THB 4.50 per share on 30 July 2024, setting the record date for eligible shareholders on 14 August 2024, and scheduling the payment for 28 August 2024.
Moreover, PTTEP made a meaningful impact on national development, contributing over THB 30,170 million in income tax, royalties, and other remunerations to the government in the first half of 2024. This substantial contribution supports vital national development initiatives spanning community upliftment, education, and research and development (R&D). Additionally, profit sharing from petroleum production in the G1/61 and G2/61 Projects, under the Production Sharing Contract (PSC), directly funnels into government revenue, further spurring national advancement.
I’m thrilled about the UAE expansion! This is a huge step forward for PTTEP.
But at what cost? The environmental impact of drilling more oil is catastrophic.
They’ve mentioned net-zero emissions and carbon sequestration efforts. That’s a big deal.
Net-zero is all talk. With the current climate crisis, we need reductions, not offsets.
Don’t forget about their digital platform innovations. That’s futuristic thinking right there.
Exactly, those advancements will make operations more efficient and cost-effective.
Tech won’t save us from the environmental havoc! Priorities need to be reevaluated.
Giving universities access to geological data is a great move for future talent development.
Yes, but will it actually translate to better job opportunities or just more unpaid internships?
Good point. The industry needs to commit to actually hiring these trained professionals.
I hope so. Genuine internships can be stepping stones if done right.
Impressive financials! PTTEP is doing an outstanding job managing its revenues and investments.
Outstanding job managing revenues, but at what cost to our planet? Not impressed.
Businesses have to balance profitability and sustainability. PTTEP is trying.
Trying isn’t enough. We need real, impactful changes.
The dividend payout sounds amazing. I wish other companies were this generous with their shareholders.
Generous dividends are nice, but what about future growth? That’s what we should be considering.
True, but a healthy mix of both is doable.
Dividends are fine, but if the company isn’t forward-thinking, it’s all going to crumble.
Marine conservation data collection from offshore platforms is a brilliant idea. Kudos PTTEP!
Hope it actually helps and isn’t just a PR stunt.
Agreed. Transparency in their findings will be key.
800 MMSCFD natural gas production is impressive. Great job on hitting that target.
But is it really worth it given the environmental implications?
Natural gas is a transitional fuel. It’s cleaner than coal and a step toward reduced emissions.
Cleaner? Maybe. But we need to move past all fossil fuels now.
With these initiatives, PTTEP could play a bigger role in renewable energy. Why not start now?
Because oil and gas are still highly profitable, and the world still relies on them.
True, but diversification into renewables now secures long-term stability.
I’m curious how PTTEP will sustain this growth in the long term. Markets fluctuate.
They need to innovate continually. Otherwise, they’ll be left behind.
Yes, innovation is key. The tech platform is a good start.
Cutting GHG emissions by 3.22 million tonnes is commendable! More companies should follow this example.
The EP Digital Platform sounds promising. Excited to see how it enhances operations.
Digital platforms are great on paper. The true test will be in implementation.