Earnings Report /
Thailand

PTT Exploration & Production PCL: 3Q22 earnings beat forecast; further YoY growth for 4Q22

  • Above all estimates

  • PTTEP reported a 3Q22 net profit of Bt24,172m

  • Net non-recurring gain totaled US$28m

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

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Bualuang Securities
26 October 2022

The 3Q22 street-beating result, prolonged strong YoY core earnings growth through 4Q22, and expectations of higher oil prices amid OPEC’s massive production cut should trigger PTTEP’s share price rally. The current valuation is attractive—a YE23 PBV of 1.4x (0.6SD below its long-term mean) with a good 2023 dividend yield of 5.1% (against 3.1% for the SET).

Above all estimates

PTTEP reported a 3Q22 net profit of Bt24,172m, up 153% YoY and 17% QoQ. Stripping out extra items, core earnings would be Bt23,173m, up 111% YoY and 4% QoQ. The result was 34% above our forecast (26% above that of the consensus), due to higher sales volume than modeled, and lower unit cost and tax expenses than expected.