Petronas 1H net profit doubles as energy prices recover


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KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) staged a rebound in the first half ended June 30, 2021, as the oil and gas industry saw a recovery in price and demand following the reopening of key economies globally.

It profit after Tax (PAT) rose more than 100% to RM18.9bil compared with a loss after tax (LAT) of RM16.5bil a year, in tandem with higher earnings before interest, tax, depreciation and amortisation (EBITDA) and lower impairment loss following the upward trend in prices.

The national oil company reported on Friday the group’s performance was supported by the recovery in commodity prices following improved economic conditions coupled with lower costs.

Its revenue increased by 17% to RM109.6bil from RM93.6bil in the first half of 2020, mainly attributed to favourable average realised prices for major products and higher sales volume impact mainly for liquefied natural gas (LNG) and sales gas.

Petronas said its Ebitda jumped 57% to RM46.1 bil from RM29.4bil, mainly due to higher revenue and lower operating expenditure.

Cash flows from operating activities (CFFO) as at June 30, 2021 increased by 24% to RM32.7bil from RM26.3bil previously, mainly due to higher cash operating profits.

For the second quarter ended June 30, 2021, revenue rose 68% to RM57.1bil from RM34bil mainly driven by favourable impact on prices for major products and higher sales volume impact for LNG and petroleum products.

Petronas said Ebitda stood at RM23.2bil, an increase of RM14.1bil from RM9.1bil a year ago, in line with higher revenue partially offset by higher product costs and operating expenditure.

It recorded PAT of RM9.6bil compared to the LAT of RM21bil a year ago.

Commenting on the results, its president and group CEO Tengku Muhammad Taufik said Petronas’ solid performance was due to its response in enabling continued operational excellence during a period of favourable market conditions in the first half of 2021.

“Amidst an uncertain outlook, the Group remains steadfast in delivering cost-effective solutions with a lower carbon footprint by advancing its technology and digitalisation agenda,” he said.

On the outlook, he said the oil and gas industry has seen a recovery in price and demand following the reopening of key economies globally.

“Nevertheless, the anticipated rise in oil supply and fresh lockdowns triggered by the emergence of new Covid-19 variants may impact the price and demand recovery.

“Petronas will continue to focus on maximising value by leveraging the group’s integrated value chain to capture new opportunities and mitigate the impact of market uncertainties,” he said.

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