KUALA LUMPUR: Petroliam Nasional Bhd (PETRONAS), which posted profit after tax (PAT) of RM23.8bil in the first quarter of 2023, expects moderating oil and gas prices to squeeze its profitability this year.
“Oil and gas prices are expected to moderate due to continued economic uncertainties, hence lower profitability is anticipated compared to last year.
“Nevertheless, PETRONAS remains committed to strengthening its business activities, while pursuing its sustainability agenda,” PETRONAS said in a statement.
The national oil company said compared to the previous corresponding quarter, its PAT recorded a 2% improvement. However, its PAT was down 2% from RM24.4bil recorded in the fourth quarter of 2022.
Its revenue for the quarter was RM90.4bil, a 15% drop from the fourth quarter of 2022.
It noted that the reported revenue in the first quarter 2023 was 16% higher compared to the first quarter of 2022 largely due to improved sales volumes and favourable impact from foreign exchange. This was partially offset by lower average realised prices from major products.
Capital investments (capex) amounted to RM 10.5bil ringgit, contributed by upstream and gas projects, it said.
Domestic capital expenditure was up by 44% from the same period last year, mainly for its floating liquefied natural gas (LNG) project in Sabah state and the Kasawari gas field development in Sarawak state, it added.
“Given the risk of continued uncertainty and volatility in the business environment, PETRONAS will maintain a cautious outlook for 2023.
“The group will continue to exercise prudent financial management and firm discipline in reinvesting to strengthen its business portfolio and build the necessary resilience with continuous improvements in commercial and operational excellence,” PETRONAS said.
President and group CEO Tan Sri Tengku Muhammad Taufik said: “PETRONAS’ commendable performance in the first quarter bears testimony to the group’s continuing commitment to meet growing energy demand while developing solutions for a lower carbon future, even as we contend with an increasingly complex and volatile business environment.”
“Against this backdrop, PETRONAS will need to take credible actions to continue delivering sustainable value in discharging our responsibility as a national oil company even as we aspire to grow as a global energy player. We will remain steadfast in progressing our strategies and have now crystallised our three-pronged growth strategy into the PETRONAS Energy Transition Strategy, further demonstrating our clear ambition for a just and responsible transition,” he said.
“As we move forward, PETRONAS will remain cautious, focus on prudent financial management and invest in strengthening our core and expanding our business portfolio. At all times, we will aim to grow value for our stakeholders and partners, with an unwavering commitment to ensuring the well-being of Malaysians and the communities wherever we operate.”