Q1 2019 Financial Results and Strategy Update SET Digit ital al Roadshow show 5 June ne 2019 2019
Ke Key y Hi Highlights lights Industry dustry Tre rends ds St Stra rategy tegy an and Gr Grow owth th Finan Fi anci cial al Pe Perf rformance ormance
Q1 201 019 9 Perfor formance mance Hig ighli ligh ghts ts 394 394 MMUSD of Ne 319 KBOED of Sales 319 Net Income ome es Volume ume 29.3 29 .3 $/BOE of Unit 0.00 0. 00 of LTIF* t Cost st F* Financia ancial Oper erations tions Start rt Devel velopmen opment in Algeria ria Successful well drilling in (1 st phase of Algeria HBR) AC/P54 54 9.5 9.5 MTPA of Signed ned LNG SPAs As Explo ploratio ration Deve velopm lopment ent (MOZ Area 1) Acquisition isition of Murp rphy hy ’ s bu busines iness PSCs Signed gned in 4 Newly Awarded Exp 4 xploration oration Block cks s February 2019 Bongk ngkot ot/ Growth wth (in Malaysia and UAE) Eraw awan an *LTIF is Loss Time Injury Frequency 3
Ke Key y Hi Highlights lights Industry dustry Tre rends ds St Stra rategy tegy an and Gr Grow owth th Finan Fi anci cial al Pe Perf rformance ormance
In Industry try Trends nds: : Oil il Mar arke ket t Outlook look Price volatility driven by supply side US$ / Barrel Brent Min-Max Brent Analyst Consensus* Dubai 110 2019 c onsensus 2019 Q1 actual 2018 actual 100 Q2 Brent 67 US$/BBL Brent 63.1 US$/BBL Brent 71.31 US$/BBL FY Brent 70 US$/BBL Dubai 63.4 US$/BBL Dubai 69.65 US$/BBL Spread -0.3 US$/BBL Spread 2.6 US$/BBL 90 80 Expecte ected d Brent 60 60-70 70 70 USD/BBL BBL in 2019* Analyst Consensus 60 50 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 201 9 201 8 Keys to watch: h: • US US to to end Iran n oil l waiver ivers s after er May y 2 Requirin uiring g Saudis’ Outpu tput to Replac lace e Disrup uptio tion n • Confr front ntatio ation n betwee ween n Iran n and US • US sanc nctio ion n on Venez ezuela uela Saudi Arabia Iraq Kuwait UAE • Fighti hting ng in Libya ya Spare Capacity • Revise vise OPEC cut to serve ve disru sruptio ion n Output at Risk • US pipel eline ine debottlen lenec ecking king MBD MBD • Lower 0 1 2 4 3 er demand and growt owth h from om US-China hina trade ade war Iran Libya Venezuela Remark: * Bloomberg Analyst Consensus (CPFC) as of 22 April 2019 Source: Bloomberg Article published on 3 May 2019 5
Ke Key y Hi Highlights lights Industry dustry Tre rends ds St Stra rategy tegy an and Gr Grow owth th Finan Fi anci cial al Pe Perf rformance ormance
“Expand” for sustainable growth Focus growth in strategic investment areas and diversify into energy related business “ Energy Partner of Choice ” Myanmar S1 “Strategic Alliance” in the Middle le East “Coming Home” Sinphuhom MOGE3 to South h East Asia E5 M3 Thailand Yadana Zawtika MD11 Yetagun B8/32 & 9A MD7 Expand Ex Erawan Arthit Contract 4 Sabah H Bongkot MTJDA Sabah K Growth th from m ‘Coming Home to SEA’ and SK417 SK410B ‘Middle East JV’ Malaysia SK438 PM415 Acquired ed Murphy phy Oil ’ s busine siness ss in Malaysia sia SK309& SK405B PM407 SK311 Awarde Aw ded d 2 2 explora rati tion on blocks s in Malaysia SK314A Gas to Power r in SEA LNG capabil bility ty with PTT Major projects by phase Development Exploration Production 7
“Execute” for long -term rm val alue e creat ation ion Accelerate FID projects and resources discovery “Energy Partner of Choice” Resou ources ces Myanmar Exploration Volum ume • In process of drilling 5 wells in Reserves 2019, with one in MD-7 for Bongkot & Erawan deep-water gas potential Volume me • PSC Signing in Feb 19 Reserve ves • Transition plan in place Algeria Algeria HBR • Start of Development Activities since Myanmar Resou ources ces March 2019 Australia Thailand • 1 st Phase: 10-13 KBPD in 2021 • Successful drilling • 2 nd Phase: 50-60 KBPD in 2025 result of the exploration well, Orchid-1 Malaysia Volume me Mozambique Reserve ves Australia Mozambique Area 1 • First Mover of Onshore LNG Plant Resou ources ces Development in Mozambique Malaysia Exploration Near-Term Contribution • SPAs signed for 9.5 MTPA • In process of drilling 1 well in 2019 • Initial 2 trains with capacity of 12.88 Potential Resources and plan for 4 wells in 2020 MTPA, anticipated FID in Q2/2019 New PSCs 8
PTTEP’s High Priority Technology Programs To support E&P business and future investment opportunities New w Business ness E&P Techn echnol ology ogy S1 Enhance S1 hanced d Oil Unlock ck High-CO2 O2 Advance ce Explo ploration ration AI & Robotics cs Green n Techno nology ogy Recovery ry (EOR OR) ) Gas Producti ction on Technolo nology gy Acceler Ac erati ation on of explorati ation on cycle time Carbon Capture from UAV for Aerial Improve performance and Extract more Unlock inspection services and speed of reservoir production from hydrocarbon Technologies to AUV for subsea identification, image reservoir by by advanced CO 2 reduce CO 2 emission inspection & surveillance by 25% in 2030 processing & interpretation advanced EOR removal tech. tech. UAV AUV Remark: UAV is Unmanned Aerial Vehicle. AUV is Autonomous Underwater Vehicle. 9
PTTEP’s Aspired Portfolio in 2030 Target for sustainable growth 2030 5% % CAGR on Pro roduction uction Targ rget et ≥ 7 years s of R/P Rati tio GRC RC FID Projects ects HPO SVC Sustai taina nable le Devel elopment opment Fr Framewor work 10 10
Ke Key y Hi Highlights lights Industry dustry Tre rends ds St Stra rategy tegy an and Gr Grow owth th Finan Fi anci cial al Pe Perf rformance ormance
Q1 201 019 9 Ke Key Fi Finan ancial cial Perform ormance ance Delivered healthy EBITDA margin supported by cost management Average Sale Selling Volum umes es Price Thailand & Other SEA Rest of world MTJDA Q4 2018 Q1 2019 1% % Qo 319,23 ,230 3% % QoQ 320,90 ,905 QoQ 6.90 6.92 Gas ($/MMBT MMBTU) U) 66.01 58.82 Liquid ($/BBL) Strong gas price Bongkot South shutdown : BOED 47.79 46.21 Weighte hted Avg. ($/BOE) amid lower liquid offset with higher gas price led to slightly 68.30 63.41 nomination in Arthit and Avg. . Dubai ($/BBL) Unit: decreased ASP more crude sales in Avg. . HSFO FO ($/BBL) 69.63 63.95 (High Sulphur Fuel Oil) Algeria Birseba 74:26 73:27 Volume Mix (Gas s : Liquid) Q4 2018 Q1 2019 Sourc rce e Unit & Used d Cost of fund First t Qua uartile rtile among Asian an peers 943* 943* 10% QoQ 10 1,000 SD t: MMUSD 587** ** Others Q4 2018 Q1 2019 Operatin ing 500 Driven by lower G&A Unit: Cash sh deposi sit for Unit : $/BOE OE cash sh flow ow Murphy’s acquisition and operating expense 16.28 13.34 CAPEX EX & Others Cash cost st from less maintenance - 16.41 15.99 Non-Ca Cashcost st activities Sourc Sources es Uses Uses 76% 76 32.69* 29.33* Unit cost st Maintain strong OCF and sustain EBITDA TDA Margin EBITDA Margin level Note: * Exclude costs related to new business, if include, unit cost for Q4 2018 and Q1 2019 are 32.77$/BOE Remark: * Net of adjustment for the effect of exchange rate changes on cash and cash equivalents ** Excludes cash flows for short-term investments fixed deposit > 3 months) and 29.48 $/BOE 12 12
Outlook look & T Tak akeaway eaways Solid fundamental with significant shareholders value creation Key Tak akeaways aways 2019 9 Guidance* dance* Q2 2019 FY 2019 Industry In try Average ge Sales es Volum lume • Price e volat atil ilit ity y driven en by supply ply side ~ 330 330 ~ 321 321 • Pote tent ntial ial oversuppl supply y from new LNG projects ojects • Less ss concer ncern n on IMO regulat lation ion Average ge Gas Price** e** Strateg ategy ~ 6. 9 ~ 6. 9 • ‘Expand’ and ‘Execute’ for sustaina tainable ble gro rowth th and long-term term value e cre reat ation ion Unit t Cost st** ** ~ 32 ~ ~ 31 31 • Aspir ired ed portf tfoli olio o in 2030 0 of 5% CAGR on production target and ≥ 7 years s of R/P rati tio EBITDA DA Margin** gin** Fi Finan ance ce FY 2019 70 70-75 75 % • Healthy lthy and ready dy for new opportunit tunities ies Note: * Excluded Murphy’s acquisition ** Based on FY2019 average Dubai oil price at 66 $/BBL 13 13
Than ank k you an and Q&A You ou can n rea each h the e Inv nves estor tor Rel elations tions tea eam for or mor ore e inf nformat ormation ion and nd inq nquiry uiry through ugh the e fol ollowin owing chann nnels: ls: ‘Energy Partner of Choice’ htt ttp://www /www.pttep. .pttep.com com +66 2 537 4000 IR@pttep ttep.com .com 14 14
Supple lemen mentary tary in information rmation Q1 2019 Fi Financial ncial Results lts 1 6 - 19 19 Sustai taina nabil ilit ity y Developm elopment ent 20 20 Thail iland and Energy rgy Updates ates 21-23 21 23 Reser erves es at t th the Year-end end 2018 24 24 Key Project ct Highli hlight ghts s by Region on 25-35 25 35 Project ect Deta tails ls 3 6 -4 1 Organizat nization ion Str tructure ture 42 42 Rati tio o and Fo Formula la 43 43 15 15
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