KUALA LUMPUR: Petroliam Nasional Bhd’s (Petronas) net profit more than tripled (+349%) year-on-year (y-o-y) to RM6.07bil for the third quarter ended Sept 30, 2016, despite a 19% fall in revenue to RM48.74bil.
This was attributed to a much lower net impairment on assets of RM395mil compared with RM5.43bil a year earlier as well as lower product and production costs, favourable foreign exchange rate and lower well costs.
Announcing its interim financial report on its website on Wednesday, the national oil company said that sales volumes of both petroleum products and crude oil declined y-o-y (by 3% and 1% respectively) during the quarter.
For the nine-month financial period, however, Petronas’ net profit was almost halved (-49%) to RM12.25bil on 22% lower revenue of RM146.31bil.
“This was mainly due to the downward trend of key benchmark prices (Dated Brent and Japan Customs Cleared Crude (JCC), higher net impairment on assets and well costs as well as lower sales volume of petroleum products, crude oil and condensates and processed gas,” it said in a statement issued to the press.
Cumulative earnings before interest, tax, depreciation and amortisation (Ebitda) were RM48.5bil, down from RM56.3bil during the same period last year.
Comparing its Q3 results with those of the immediate preceding quarter, Petronas said earnings were better in Q3 in some key metrics despite prolonged market challenges, thanks to its group wide efforts to reduce costs, improve efficiency in cash management and sustain world-class operational efficiencies as well as lower net impairment on assets and well costs.
Revenue inched up 1%, or RM0.3bil, compared to Q2.
Profit after tax also rose from RM1.6bil to RM6.1bil, a significant improvement. “The increase primarily reflects lower net impairment on assets and well costs and higher average realised prices for most products. This was partially offset by lower sales volume for major products,” it explained.
On the outlook, Petronas said the current oil price environment continued to pose significant challenges to the industry and the outlook remained uncertain.
“While performance in 2016 is affected, Petronas has been responsive with strong operational efficiency and financial discipline,” it said.
For the period ended Sept 30, 2016, Petronas has paid a dividend of RM12bil. The remaining RM4bil in dividend will be paid in October and November.
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