Q2 2019 Financial Results and Strategy Update Oppor ortun tunity ity Day 8 A August gust 2019
Key Ke y Hi Highlights lights Industry dustry Tre rends ds St Stra rategy tegy an and d Gr Growth owth Financ Fi ancial ial Pe Perf rformance ormance
Q2 201 019 9 Perfor formance mance Hig ighli ligh ghts ts SK410B 0B 335 KBOED of Sales 433 433 MMUSD of Net s Volum lume t Incom ome 48 USD/BOE of Avera 72 72 % of EBIT rage ge Selling ing Pri rice ITDA DA Margi rgin 31 31 USD/BOE of Unit 1,310 310 MMUSD of Operating Oper erations tions Financia ancial t Cost st ating Cash sh Fl Flow (1H) 0.07 07 of LTIF* 0.17x 17x Debt F* t to to Equit ity y rati tio *LTIF is Loss Time Injury Frequency 3
Key Ke y Hi Highlights lights Industry dustry Tre rends ds St Stra rategy tegy an and d Gr Growth owth Financ Fi ancial ial Pe Perf rformance ormance
Industry In try Trend nds: s: Oil il Mar arket t Outlook look Price volatility driven by uncertainty of global economy Jan-1 an-18 Apr Apr-18 -18 Jul- ul-18 Oct-18 -18 Jan-1 an-19 Ap Apr-1 -19 Jul- ul-19 Oct-19 -19 US$ / Barrel el Bren ent Min-Max Max Bren ent Analyst lyst Conse sens nsus* us* Dubai ai 110 2018 actual ual 1H 2019 act actual ual 100 2019 conse sens nsus us Bren ent 71.31 US$/BBL BBL Bren ent 65.95 US$/BB /BBL Q3 Bren ent 70 US$/BB /BBL Dubai ai 69.65 US$/BB /BBL Dubai ai 65.48 US$/BB /BBL 90 90 FY Bren ent 68 US$/BBL BBL 80 80 Expecte ected d Brent Analyst t Conse sens nsus 70 70 60 60-70 0 USD/B /BBL L in 2019* 60 60 50 50 40 40 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 201 8 201 201 201 9 Keys to Watch atch Economi onomic c Stimulus ulus US Pipeline eline Iran an Respo spons nse to OPEC+ Extend ending ng No Deal al from om Bre rexi xit Meas asures ures Debottle bottlenec necki king ng Prod oduc ucti tion on Cut San ancti tions ons Remark: * Bloomberg Analyst Consensus (CPFC) as of 18 July 2019 5
Key Ke y Hi Highlights lights Industry dustry Tre rends ds St Stra rategy tegy an and d Gr Growth owth Financ Fi ancial ial Pe Perf rformance ormance
Grow owth th Strategie ategies “Energy Partner of Choice” throu ough gh Comp mpeti etiti tive e Performance rmance and Innovati ation on for Long-te term rm Value e Creati tion on “Strategic Alliance” “Coming Home Strategy” Expand Partne nerin ring with world rld-clas lass opera rators rs Execute Major projects by phase Production Development Exploration Midstream GRC RC SVC HPO Sustainabl tainable e Develo lopm pment nt Framew ework ork 7
Key Mil Ke ilestones tones an and Way ay Fo Forward ward to the Sustai ainable able Grow owth th Winning of Bongkot Acquisition of APICO’s Transition of Acceleration of Acquisition of Partex FID of Mozambique Gas discovery in and Erawan biddings interest from Tatex Operations Exploration Activities in the Middle East Area 1 Project SK410B Project G1/61 61 and G2/61 61 Sinphuhorm uhorm Proj oject SK410B 410B Feb 2019 Jun 2019 Jul 2019 Dec 2018 Jan 2019 Mar 2019 Way Forward rd Algeri ria HassiBir Rekaiz Sinphuhorm uhorm Proj oject New Business M&A Award of 2 Offshore Acquisition of Murphy Oil Development of Algeria Completion of Murphy Oil Acquisition of APICO’s Opportunities Exploration blocks in UAE and award of 2 exploration Hassi Bir Rekaiz Project Acquisition interest from CEPSA blocks in Malaysia 8
Key Ke y Hi Highlights lights Industry dustry Tre rends ds St Stra rategy tegy an and d Gr Growth owth Financ Fi ancial ial Pe Perf rformance ormance
6M 2019 19 Key Fi Finan ancia ial l Perfor ormance ance Strong core performance supported by higher volumes and gas price Average ge Selling ing Price Sale e Volum lumes es 327 327 6M 2018 6M 2019 2 98 4% YTD 4% Gas ($/MM MMBT BTU) U) 6.14 6.98 10 10% YTD Liquid uid ($/BB /BBL) 66.77 62.07 07 : KOED Strong gas price The additional 22.22% Weigh ghted ed Avg. . ($/BOE) OE) 45.51 47.26 leading to higher Unit: interest in Bongkot Project average selling price Avg. . Dubai ai ($/BB BBL) L) 68.01 65.48 6M 2018 6M 2019 Volume ume Mix x (Gas : Liquid) uid) 71:29 73:27 Thailand & MTJDA Other SEA Rest of world Key Financi ncial al Per erformance ormance 2,322** ** Others rs Unit it : $/BOE OE 6M 2018 6M 2019 2,000 2, 1,790* Divi ividen dend d it: MMUSD USD 74 74% payme ment nt Cash h cost 14.29 14.42 Debe bent nture re Issuanc nce Unc nchan anged ged YTD Repaym ymen ent of Hybri rid d Bonds ds EBITDA TDA Margin Non-Cas ashcost 16.08 15.82 1,000 1, Unit: Repaym ymen ent of Opera ratin ing g Maintain strong Remain competitive Seni nior r Debt bt cash flow OCF Unit cost 30.37 30.24* unit cost CAPEX - - Sourc Sources es Uses Uses Remark: * Net of adjustment for the effect of exchange rate changes on cash and cash equivalents Note: * Exclude costs related to new business, if include, unit cost for 6M 2019 is 30.34$/BOE ** Excludes cash flows for investing in short-term investments (Fixed deposit > 3 months) 6M Source ce & U & Use of Fu Funds Unit t Cost st 10 10
Fi Finan ancial cial Position ition an and Div ivid iden ends ds Healthy balance sheet with low gearing Capital ital Str tructure ture Dividend dend Payment nt Hist stor ory MMUSD Policy licy : No No Less s Than n 30% of Net Income me D/E Ratio io 19,484 84 20,000 18,775 75 1.00 THB per share are 6.00 5,533 4,832 1H 2H 0.80 15,000 5.00 1,946 2,046 0.60 4.25 10,000 4.00 12,00 ,005 3.25 0.40 11,89 ,897 3.25 3.00 2.75 5,000 2.25 0.20 0.17 0.16 2.00 2.00 2.50 0 0.00 2.25 1.75 FY 201 FY 2018 Q2 2 2019 1.50 1.00 0.75 Assets ets 0.00 Equity (LHS) Interest Bearing Debt (LHS) Other Liabilities (LHS) Gearing Ratio D/E (RHS) 2015 2016 2017 2018 2019 Payout ut Ratio io N/A 98 90 55 35 35 US$ US$ (% of net income) me) 100% 100% 100% 100% Debt Profile** e** Payout ut Ratio io 47 79 64 51 38 38 (% of recurring Weighted Average net income) 5.32 5.04 Cost of Debt* (%) XD Date 8 August 2019 [100 : 0] [100 : 0] [Fixed : Floating] Record date 9 August 2019 Average Loan Life* 8.67 8.62 Payment Date 23 August 2019 (Years) Remark: * Excludes Hybrid bonds 11 11
Revis ised d Fi Five – Year ar Pla lan* Incorporating growth from recent developments : Murphy and Bidding win of BKT & ERW Unit : KBOED 437 437 409 409 Rest of World 380 380 365 365 400 345 345 Other r SEA 306 306 300 Sales Volume me 200 Thailan and d & MTJDA 100 0 2018 2019 2020 2021 2022 2023 5 Year ars s (2019 – 2023) 5,663 6,000 5,040 Acqui uisit sition ons CAPEX X 12,659 4,373 4,300 2,086 4,064 OPEX X 8,695 3,463 4,000 2,095 Investmen stment t 1,556 TOTAL 21,354 1,823 OPEX 1,592 Acqui uisit sition ons 1,145 1,629 (Exclude Acquisition Cost) 676 676 CAPEX 852 852 658 658 719 719 2,000 (Dev ev & Pre-sanc nctio ion n proje ject cts***) ***) 1,265 511 511 CAPEX 2,269 34 34 1,965 1,814 1,758 1,437 (Produ duci cing g proje jects*** cts****) *) 1,019 0 Mozambique LNG 2018 2019 2020 2021 2022 2023 Capacity 12 MTPA Key Projec ect (~300KBOED) Start-up up** Sabah H Algeri ria HBR (phase se l) South uthwest t Vietnam Contr tract t 4 (Ubon on) Algeri ria HBR Capacity 490 MMSCFD (Full phase) Capacity 270 MMSCFD Capacity 25-30 KBPD Capacity 10-13 KBPD (~80 KBOED) Note: * Exclude Partex acquisition Capacity 50 KBPD (~45 KBOED) ** Subject to FID timing *** Development & Pre-sanction projects include Sabah H, Mozambique LNG, Contract 4 (Ubon), Algeria HBR and Southwest Vietnam **** Includes exploration and appraisal in all projects and head office CAPEX 12 12
Outlook look & T Tak akeaway eaways Volumes boost with priorities in business transition for full value realization 2019 9 Guidance dance PTTEP’s Priorities FY 2 FY 2019 Q3 2019 Ensuri uring ng Smooth th Busines ness s Tra ransition sition Average ge ~ 356 356 ~ 345 345 Sales es Volum ume Accele elerat ation ion of Explor lorat ation ion Acti tiviti ities es ~ 6. 8 ~ 6. 9 Avera rage ge Gas s Price rice 32-33 32 33 ~ 32 Unit t Cost st FY 2019 70 70-75 75 % EBITDA DA Margin gin Note: Included the acquisition of Murphy’s business in Malaysia which was completed in July 2019 Excluded the acquisition of Partex Based on FY2019 Dubai oil price at 63 $/BBL 13 13
Than ank k you an and Q&A You can reach h the Investor tor Relatio tions ns team for more informa rmation ion and inquiry uiry throug ough h the followin wing g channels: els: htt ttp://ww //www.pttep. .pttep.com com +66 2 537 4000 IR IR@pttep ttep.com .com
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