The group said the better showing was mainly due to favourable prices for major products aligned with higher benchmark prices. — Bloomberg
KUALA LUMPUR: Petroliam Nasional Bhd (PETRONAS) saw its net profit jump 120% to RM77.2bil while revenue rose 58.3% to RM271.3bil in the first nine months of 2022 (9M22).
The group said in a statement this was mainly due to favourable prices for major products aligned with higher benchmark prices.
In 9M22, the group’s capital expenditure increased 34% to RM27.4bil, with the upstream business remaining a major contributor, while cashflows from operating activities increased 52.7% to RM83.1bil.
For its third quarter ended Sept 30, 2022 (3Q22), net profit rose 88.65% to RM30.76bil, while revenue was 60.6% higher to RM99.2bil, mainly due to improved prices for major products and a positive impact from exchange rates.
On its outlook, the group said oil and gas prices will remain volatile, influenced by intensifying geopolitical and economic headwinds.
“In the face of the unprecedented global energy crisis, PETRONAS will focus on safely delivering commercial and operational excellence.
“PETRONAS will continue to invest responsibly towards ensuring energy supply security while pursuing its growth strategy and net-zero carbon emissions target by 2050 (NZCE 2050),” it said.
PETRONAS president and group CEO Datuk Tengku Muhammad Taufik said the group’s delivery of a robust financial performance in 9M22 is the result of the dedication and service of its employees and partners as it contended with an ongoing volatile period in the energy market.
“The group will continue to focus on delivering safe performance to maximise its cash generators and grow the business portfolio, in line with its three-pronged growth strategy and NZCE 2050 target,” he said.
“We are taking deliberate steps to unlock new value from our core portfolio with a focus on the decarbonisation of our operations and will pursue attractive opportunities in cleaner energy solutions,” added Tengku Muhammad Taufik.
He noted that PETRONAS remains grounded in discharging its responsibilities to its shareholder including the nurturing of a resilient local oil and gas services and equipment ecosystem and contributing to the well-being of the communities where it operates.
On its upstream business, PETRONAS said it recorded a total daily production average of 2,415 thousand barrels of oil equivalent (boe) per day in 9M22, higher than 2,269 thousand boe per day recorded a year earlier.
This was mainly driven by higher production from Malaysia operations, coupled with improved crude oil production from international operations.
This was partially offset by lower natural gas production from international operations following the divestment of Azerbaijan assets.
In addressing emissions from its operations, the upstream business recorded a 19% reduction in greenhouse gas emissions in 3Q22, following the execution of multiple-emission reduction projects.
On its gas business, PETRONAS said its overall equipment effectiveness (OEE) stood at 96.2% across all segments.
As for its downstream business, PETRONAS recorded OEE of 82.8% in 3Q22, supported by stable plant operations.
The overall marketing business saw a 20.9% jump to 18.5 billion litres in sales, mainly driven by demand recovery in both retail and commercial segments.
Also, Petronas Dagangan Bhd
recorded a 33% increase in sales volume as more economic and social sectors reopen.
Meanwhile, PETRONAS’ majority-owned South African fuel retailer business Engen saw a 9.5% increase in sales volume, mainly contributed by demand recovery in commercial segment.
Petronas Chemicals Group Bhd (PetChem) recorded plant utilisation of 85.1%, producing 7.1 million metric tonnes of petrochemical products due to statutory turnarounds at five plants.
PetChem recorded petrochemical sales volume of 5.7 million metric tonnes on the back of stable petrochemical product prices, in line with market recovery and tight supply.
As for its clean energy solutions provider Gentari Sdn Bhd, which was officially launched in September, the company has to date installed 89 charge points in Malaysia.
This includes 49 charge points in Suria KLCC, making it the biggest electric vehicle (EV) charging hub in South-East Asia.
The hub also features the first DC fast charger deployed in a Malaysian shopping mall and the first EV charger installed with digital out-of-home advertising in South-East Asia.
