Myanmar Asset Press Release

6 May 2019, Yangon, Myanmar – PTT Exploration and Production Public Company Limited (PTTEP) reported its first quarter’s net income of USD 394 million (equivalent to MMK 602,820 million), reflecting a successful “Expand & Execute” strategy and its readiness to build a sustainable growth in the short term and long term.

Phongsthorn Thavisin, PTTEP President and Chief Executive Officer, said the company recorded recurring net income in the first quarter of this year at USD 374 million (equivalent to MMK 572,220 million) increased by 23% from USD 304 million (equivalent to MMK 465,120 million) in the same period of 2018. However, profits from non-recurring items was USD 20 million, decreased from USD 119 million in the same reported period last year. This was mainly driven by a less appreciated due to currency changes, which mostly have no impact to company’s cash flow. Consequently, PTTEP reported net income for the first quarter this year at USD 394 million (equivalent to MMK 602,820 million), decreased by 7% from USD 423 million (equivalent to MMK 647,190 million) in the same period last year.

For the first quarter of 2019, the Company’s total revenues were USD 1,428 million (equivalent to MMK 2,184,840 million), increased by 15% from USD 1,240 million (equivalent to MMK 1,897,200 million) in the same period last year. This was primarily driven by improved average sales volume to 319,230 barrel of oil equivalent per day (BOED), comparing with 293,099 BOED in the first quarter of 2018 as a result of the acquisition of additional participating interests of the Bongkot Project, coupled with higher average selling price from USD 44.01 per barrel of oil equivalent (BOE) to USD 46.21 per BOE. Consequently, PTTEP has operating cash flow of USD 943 million (equivalent to MMK 1,442,790 million) and EBITDA Margin of 76% at the end of the first quarter.

“PTTEP is moving forward with the new “Expand & Execute” strategy which we’ve actively implemented since earlier this year and have successful achieved several major milestones. We marked our move in the Middle East by being awarded two offshore exploration blocks, along with our global strategic partners, in one of the world’s highly petroleum potential locations, the United Arab Emirates. We also extended our footprint in Southeast Asia by acquiring Murphy Oil Corporation’s business in Malaysia. This will help boost sales volume and sales revenue immediately. PTTEP were awarded additional two offshore exploration blocks in Malaysia as well. The aforementioned investments will help PTTEP grow in both short term and long term” said Phongsthorn.