PTTEP: Earnings to Cripple by Weak Oil Price

PTTEP: 1Q20 Results Above Our Expectation

PTTEP: Possible Earnings Recovery by 3Q20

PTTEP: Thai E&P Leader with Promising Growth Outlook

Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

Equity Bottom-Up

We revise down our 2020-22E earnings forecast by 17% anticipating the average crude oil price will plunge to US$50/BBL (from US$60/BBL), due to Saudi’s sudden oil price cut and production surge announcement following Russia’s denial to join additional production cut proposed by OPEC+ at the meeting last Friday.The story:<ul>
<li>Aggressive response from Saudi to its collapse of OPEC+ alliance with Russia, by increasing oil production and price cut.</li>
<li>Revise 2020-22E earnings down by 17% anticipating average crude oil price will plunge to US$50/BBL (from US$60/BBL)</li>
</ul>We also cut our target price by 16% to Bt119 to reflect the earnings revision. However, the BUY rating is maintained given the decent upside from current share price. The new TP is derived using DCF methodology (WACC 10% and TG 2%), implying 11.4x PE’20.

We revise down our 2020-22E earnings forecast by 17% anticipating the average crude oil price will plunge to US$50/BBL (from US$60/BBL), due to Saudi’s sudden oil price cut and production surge announcement following Russia’s denial to join additional production cut proposed by OPEC+ at the meeting last Friday.The story:
Aggressive response from Saudi to its collapse of OPEC+ alliance with Russia, by increasing oil production and price cut.
Revise 2020-22E earnings down by 17% anticipating average crude oil price will plunge to US$50/BBL (from US$60/BBL)
We also cut our target price by 16% to Bt119 to reflect the earnings revision. However, the BUY rating is maintained given the decent upside from current share price. The new TP is derived using DCF methodology (WACC 10% and TG 2%), implying 11.4x PE’20.

PTTEP: Headwinds from Saudi Oil Price War

PTT E&P

PTTEP: Headwinds from Saudi Oil Price War