This morning PTTEP The rebound made a new high for a year, expected to be driven by strong oil prices. As a result, most brokers revised their earnings forecast for the year ’64 up from 6-11%, with earnings expected this year to return to a strong 16.37-45.87%, but investing in this period Will it be the right rhythm? Must follow!
*** Eject New Heights around 1 year, getting more oil.
Share price of PTT Exploration and Production Public Company Limited or PTTEP This morning (5 Mar. ’64) rebounded to a high of 117.50 baht, made a new high for a year before closing the morning session with a price of 117 baht, an increase of 3.50 baht or 3.08%. 155.29% increase from 5 previous business days
By the reason that caused the share price PTTEP Rising to New Heights for 1 year as the stock price is getting positive factors. From the price of crude oil this morning rose strongly. After the Petroleum Exporting Countries and Allied Nations (OPEC +) decided to maintain production at 7.2 million barrels per day until April ’21 due to demand uncertainty recovering from the coronavirus outbreak – 19 In addition, Saudi Arabia Also cut oil production capacity by 1 million barrels per day until April.
*** Demand for oil shows signs of recovery After COVID-19 vaccination
KTB Securities (Thailand) stated that the International Energy Organization (IEA) expects global crude oil consumption in the year ’64 to increase 6% from the previous year to 96.4 million barrels per day. It is viewed that the oil inventory will drop significantly in the second half of the year due to higher oil demand. After a vaccination against COVID-19 Many areas around the world
OPEC + oil supplies have also fallen from February to April, after Saudi Arabia announced a voluntary reduction of 1 million barrels per day of its own oil production. This leads to a reduction in OPEC + total production capacity to be 8.1 bbl / day, compared with a drop of 7.2 million bpd / day in January.
Maybank Kim Eng Securities (Thailand) provides additional information that In the medium term, demand for crude oil is expected. Will rise in line with the world economy that tends to recover After the epidemic of COVID-19 Began to unravel Which increases the likelihood of further revising the assumption of crude oil price in the year ’64
*** Oman Block 61 contributes $ 100-200 million / year profit.
Before PTTEP Announced to invest in Oman Block 61 Project in the Sultanate of Oman. With an investment value of $ 2.45 billion (approximately 7.5 billion baht) by the project. It is a massive natural gas production project, accounting for 35% of the current gas produced in Oman. Which has a total production capacity of 1.5 billion cubic feet / day, which is pending approval from the government of Oman.
Asia Plus Securities believes that such investment With a 30-year long-term contract to generate profits for PTTEP Average $ 100 – $ 200 million / year And generating a cash flow of about $ 200-300 / year also makes the sales volume. PTTEP This increased by about 50,000 barrels / day. And also a project with reserves (Reserves) Larger sizes increase the reserves of PTTEP And also follow the strategy In expanding investment in the Middle East as well
*** Malaysia is becoming a treasure trove of oil and gas. PTTEP
In addition to the successful discovery of two new exploration wells in Malaysia, the Finansia Syrus Securities Company is the Lang Lebah in Project SK410B and Dokong-1 in Project SK417, Sabah H, which PTTEP It holds 56% of the shares that will start operations in the second half of the year with production of around 270 cubic feet per day of gas. This will be a factor driving the growth in the oil and gas business of PTTEP In Malaysia, which is one of the four key business growth areas of PTTEP To be even more powerful
This is in line with Bualuang Securities providing additional information that the Sabah H project will help strengthen the investment of PTTEP In Malaysia to be even stronger. Also create a positive factor for the stock price PTTEP This is because it confirms the development potential of the petroleum project of PTTEP As planned It also reaffirms the continued long-term growth trend of PTTEP As well
Broke up 64 profit targets after rising oil prices
KTB Securities (Thailand) stated that it has revised its year ’64 net profit forecast for PTTEP Increased 11% to 2.9 billion baht, an increase of 30.33% compared to the same period last year. It is expected that Dubai crude oil price for the whole year is at $ 54 / barrel (previously expected $ 49 / barrel). PTTEP There are plans to increase the amount of sales. From the ongoing new projects
This is in line with Nomura Pattanasin Securities revising the 2011 net profit forecast of PTTEP Increased 6% to 3.5 billion baht, a 45.87% increase compared to the same period last year. For the main reason From the full-year crude price of 64, there may be an upside to $ 56.54 / barrel (previously estimated $ 53.75 / barrel).
While three other analysts estimate the net profit of the year ’64 of PTTEP As follows
| Securities | Net profit of year 64 (minus) | %Chg. YoY |
| Asia Plus | 27,225 | 20.25 |
| Yuanta | 26,696 | 17.79 |
| Finansia | 26,375 | 16.37 |
*** Broke, most recommend “buy”
According to opinion polls, most analysts recommend “BUY” as they view the rising trend in oil prices. Following economic recovery Is the main factor driving the net profit of the year ’64 PTTEP Will turn back to growth from the previous year that had a strong contraction While continuously adding new projects of PTTEP Especially in Malaysia Reflect that PTTEP There is still potential for long-term growth.
| Securities | Advice | Reasonable price (Baht) |
| Asia Plus | buy | 118.00 |
| Nomura | buy | 120.00 |
| KTB | buy | 125.00 |
| Bua Luang | buy | 130.00 |
| Finansia | buy | 136.00 |
| Average price | 125.80 | |
For investors who are just interested in stocks PTTEP It might not be too late to invest, even this morning. PTTEP Will rebound to New Heights in a year, but the current trading price It has not yet returned to normal levels before the outbreak of COVID-19 in the early years of the year. Likely to recover in line with crude oil prices That has risen according to increased demand After the start of the COVID vaccination in many areas.
In addition, many analysts Still have the same opinion that the share price PTTEP There are still upside from new projects that have been invested, such as Oman Block 61 and Sabah H projects.
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