KUALA LUMPUR: Petroliam Nasional Bhd (Petronas), which posted a stellar performance in the second quarter thanks to higher oil prices, will pay an additional RM3bil dividend to the government.
Group chief executive officer Datuk Wan Zulkiflee Wan Ariffin said Petronas would pay additional RM3bil dividend to the government on top of RM13bil dividend commitment this year following to improved earnings.
“We have already approved the RM3bil interim dividend to the government, which will be given out in stages,” he told reporters at Petronas mid-year result briefings.
The national oil company posted more than four-fold jump in profit after tax to RM7bil from RM1.7bil a year ago.
Revenue for the quarter rose 10% to RM51.6bil from RM46.9bil previously.
For the first half of 2017, the group’s revenue for the period surged 15.4% to RM108.1bil from RM93.7bil previously.
Its net profit for the first half soared 160% to RM17.3bil from RM6.4bil in the same period last year.
In a statement, Petronas said the increase, however, was partially offset by higher amortisation of oil and gas properties, tax expenses, net foreign exchange losses and costs related to the non-Final Investment Decision (FID) for the Pacific NorthWest LNG (PNW LNG) Project in Canada.
Earnings before interest, tax, depreciation and amortisation (Ebitda) was RM45.2bil, a 35% increase compared to RM33.6bil recorded during the same period last year.
The group’s cash flows from operating activities also increased by 55% to RM39.8bil compared with RM25.6bil in the same corresponding period in 2016.
Capital investments totalled at RM21.3bil, mainly attributable to the Refinery and Petrochemical Integrated Development (RAPID) project in Pengerang, Johor.
Meanwhile year-to-date crude oil, condensate and natural gas entitlement volume was 1,778 thousand barrels of oil equivalent (BOE) per day while total production volume was 2,342 thousand BOE per day.
Its total assets decreased to RM596.6bil as at June 30 from RM603.4bil as at Dec 31, 2016 primarily due to the impact of the strengthening of the Ringgit against the US Dollar.
Shareholders’ equity of RM375.8bil decreased by RM4.6bil mainly due to the approved dividend of RM13bil for the financial year ended Dec 31, 2016 and the foreign exchange rate impact, partially offset by profit generated during the period.
Gearing ratio decreased to 17.1% as at June 30 from 17.4% as at Dec 31, 2016.
Petronas said in the first half of 2017, Brent Crude averaged at US$52 a barrel compared to US$42 in the first half of 2016.
“While the price of oil was a significant factor, I also view this as tangible results of Petronas’ transformation measures taken is response to the industry downturn,” Wan Zulkiflee said.
Commenting on its outlook, Petronas said despite higher prices compared to a year ago, the industry remained volatile tempering the company’s optimism.
“Petronas continues to focus on internal transformation initiatives, effective cash management and cost optimisation. The board expects the overall year-end performance of Petronas group to be fair,” Petronas said in the statement.
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