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WIRE: 03/20/2001 0:12 am ET Thailand`s PTTEP may lower sales forecast BANGKOK, March 20 (Reuters) - Thailand`s PTT Exploration and Production said on Tuesday it may have to lower its 2001 sales forecast in line with lower domestic economic growth predictions, but insisted earnings would still rise. Thailand`s government think tank, the National Economic and Social Development Board (NESDB), said on Monday it expected 2001 growth of between 3.5 and four percent, down from previous forecasts of 4.5-5.0 percent. Growth in 2000 was 4.3 percent. "Demand for gas is closely linked with GDP. The figures released yesterday (by the NESDB) see a smaller GDP growth. We periodically review our sales forecast -- which is eight percent growth for 2001 -- and we will have to take this into account," PTTEP president Chitrapongse Kwangsukstith told Reuters. Chitrapongse said gas prices would edge down this year, putting some pressure on earnings of the company, Thailand`s biggest upstream oil and gas firm. "The gas price in 2001 should not be higher than today`s price, which is based on a peak in the oil price six months ago," he said. He added that the weekend decision by the Organisation of Petroleum Exporting Countries (OPEC) to reduce production by one million barrels per day to shore up oil prices would have a limited supporting effect on gas prices. "I think the price will weaken a little, but the OPEC decision means the price will be supported a little. For every one dollar increase in the oil price, the gas price goes up 30 cents," he said. LONG-TERM AGREEMENTS Analysts say PTTEP`s long-term supply agreements give the company limited short-term protection from lower gas prices. "A large proportion of PTTEP`s gas is from the Bongkot field, which is sold on semi-annual contracts. Sales up to September are at a price agreed upon in April, which will still be fairly high," said Richard Henderson, head of research at Kim Eng Securities. Chitrapongse said PTTEP would improve on its 2000 results, which saw a net profit of 5.43 billion baht, a 150 percent jump on the previous year. "In 2001 we expect an increase on our 2000 earnings. Demand is still rising and we are increasing production, especially from the Yadana gas field which will supply the Ratchaburi power plant," he said. By midday PTTEP was trading at 100 baht per share, unchanged on the day and the same value as at the beginning of the year. In the same period, the energy sector has gained 7.3 percent and the benchmark Stock Exchange of Thailand (SET) composite index has risen 8.2 percent. Henderson said the potential of PTTEP meant the current share price was substantially undervalued. "The value of the company lies in the reserves it has found and the exploration rights it possesses. If we look on the basis of past transactions, its reserves are undervalued, and that`s without getting into the exploration rights," he said. "Using this, or even a DCF (discounted cash flow) valuation, the shares are worth double their current price." (US$ - 43.9 baht) |
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| aus der Diskussion: | Waste or make money in Thailand |
| Autor (Datum des Eintrages): | BodyG (20.03.01 16:08:02) |
| Beitrag: | 567 von 611 (ID:3137537) |
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