Impressive Q3 for Petronas


Petronas president and group CEO Datuk Tengku Muhammad Taufik (pic) said the third quarter financial performance reflects that the state energy firm continues to focus on its operational and commercial excellence.

KUALA LUMPUR: Malaysia’s state energy firm Petroliam Nasional Bhd (Petronas) posted a stronger set of financial results, recording its highest net profit of RM16.31bil for the third quarter ended Sept 30 (Q3’21) since 2017.

According to its quarterly report posted on its website, its net profit for the quarter was bolstered by higher average realised prices and net impairment write-back on assets.

The state energy firm’s latest earnings was the highest since Q4 of 2017, when it registered a net profit of RM18.2bil on the back of revenue of RM61.8bil.

For Q3’21, Petronas said its earnings before interest, taxes, depreciation and amortisation (Ebitda) grew 88% to RM26.3bil from RM14bil in the corresponding quarter last year, in line with higher revenue partially offset by higher product costs.

Moreover, the group’s revenue jumped 50% to RM61.8bil from RM41.1bil in the corresponding period a year ago mainly due to favourable average realised prices for major products, which was partially offset by lower sales volume mainly from crude oil and condensates.

Petronas HQPetronas HQ

For the nine-month period ended Sept 30 (9M21), Petronas’ net profit soared more than 100% to RM35.2bil compared to a net loss of RM19.9bil a year ago.

“The higher net profit is in tandem with higher Ebitda and a shift from net impairment losses in the prior period to net impairment write-back in the current period following upward trend in prices.

“Excluding impairment write-back and losses, the group would have recorded a profit after tax of RM34.5bil, higher by RM24.2bil as compared to profit after tax excluding impairment losses for the same period in 2020,” it said.

Meanwhile, the group’s revenue rose 27% to RM171.4bil in the nine-month period from RM134.7bil in the corresponding period a year ago, mainly attributed to favourable price impact for major products in line with higher average realised prices.

This was partially offset by the effect of the weakening of the greenback against ringgit.

Overall, Petronas explained that the improved performance was attributed to the higher commodity prices, underpinned by the rebound in energy demand as key economies recovered from the impact of the Covid-19 pandemic.

In line with the higher revenue, the group’s Ebitda rose 67% to RM72.4bil in the nine-month period from RM43.4bil a year ago.

Petronas president and group CEO Datuk Tengku Muhammad Taufik (pic) said the third quarter financial performance reflects that the state energy firm continues to focus on its operational and commercial excellence.

“We continue to ensure the reliability of our operations to leverage the recovery in global energy demand with the safety of our people and assets as our highest priority.

“Petronas will continue to preserve and strengthen its core portfolio while growing the new energy business to deliver safer, cleaner and faster solutions to our customers at competitive prices, reinforcing our role as an energy partner,” he added.

As of Sept 30, Petronas’ total assets increased to RM618.9bil compared to RM574.1bil as at end-December 2020, mainly contributed by higher cash and fund investments as well as receivables. As such, capital expenditure totalled RM20.4bil mainly attributed to upstream projects.

However, Petronas noted that its gearing ratio increased 23.7% as of Sept 30 this year from 21.3% as at Dec 31 last year mainly due to issuance of notes and bonds.

Going forward, Muhammad Taufik said the group would continue to pursue its three-pronged growth strategy and net zero carbon emissions by 2050 aspiration to contribute towards a responsible and just energy transition.

However, he reckoned the current trajectory of the oil and gas industry is likely to continue, given the modest recovery in demand supported by improvements in economic activities globally.

“Petronas will remain steadfast in driving operational and commercial excellence to improve its liquidity and profitability, in pursuit of its growth strategy,” Muhammad Taufik added.

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