By P.R. Venkat
PTT Exploration & Production's third-quarter net profit fell 23% on the year, mainly due to lower average selling prices of crude oil and hedging losses.
Net profit for the quarter that ended September was $514.0 million, while total revenue came in at $2.29 billion compared with $2.62 billion a year ago, PTTEP said Friday.
The company said that losses from non-operating items, mainly the foreign-exchange forward contracts and oil-hedging instruments, were also a major factors for weaker results.
Crude-oil demand is expected to fall in the fourth quarter due to off-peak seasonal needs in Western countries, PTTEP said, adding that it expects average sales volumes for 2023 to come in at 463,000 barrels of oil equivalent a day.
"Additionally, the continuation of high interest rates and tightening monetary policies by the US Federal Reserve, Bank of England, and EU Central Bank, aimed at curbing inflation, may potentially hamper economic growth and oil demand," it said.
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
10-27-23 0226ET
