PTTEP: 4Q20 Earnings to Soften from Lower ASP and Volume Sales

PTTEP: Target to Achieve 6% CAGR Sales Growth in 2021-25

PTTEP: Bright 2021 Earnings Outlook from Recovering Crude Price

PTTEP: 1Q20 Results Above Our Expectation

PTTEP: Possible Earnings Recovery by 3Q20

PTTEP: Positive 2H20 Earnings Outlook from Improving Volume Sales

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 expect PTTEP to report 3Q20 net profit of Bt5.7bn (-48% YoY, +33% QoQ) on the back of recovering volume sales and average selling price (ASP) which bottomed out in 2Q20.<ul>
<li>The average selling price (ASP) should be at 38.7 US$/BBL (-16% YoY, +10 QoQ), and expect the volume sales increase to 340 kBD (-4% YoY, +4% QoQ).</li>
<li>We expect the Dubai crude oil price to average at 40-43 US$/BBL during 4Q20 and rise to 50 US$/BBL level in 2021.</li>
</ul>We maintain our BUY  recommendation based on target price of Bt108, derived from DCF methodology (WACC 9.5% and TG 2%). Our valuation implies 13.3x PE’21.

We expect PTTEP to report 3Q20 net profit of Bt5.7bn (-48% YoY, +33% QoQ) on the back of recovering volume sales and average selling price (ASP) which bottomed out in 2Q20.
The average selling price (ASP) should be at 38.7 US$/BBL (-16% YoY, +10 QoQ), and expect the volume sales increase to 340 kBD (-4% YoY, +4% QoQ).
We expect the Dubai crude oil price to average at 40-43 US$/BBL during 4Q20 and rise to 50 US$/BBL level in 2021.
We maintain our BUY  recommendation based on target price of Bt108, derived from DCF methodology (WACC 9.5% and TG 2%). Our valuation implies 13.3x PE’21.

PTTEP: Recouping Crude Price to Drive 3Q20 Earnings

PTT E&P

PTTEP: Recouping Crude Price to Drive 3Q20 Earnings