Petronas records lower earnings in 3Q amid weaker average realised prices


A sign for a Petroliam Nasional Bhd (Petronas) gas station stands near the Petronas KLCC Twin Towers in Kuala Lumpur, Malaysia. - Goh Seng Chong/Bloomberg

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) recorded a net profit of RM23.9 billion in the third quarter (3Q) ended Sept 30, 2023, compared with RM30.8 billion in the same period a year earlier.

Revenue for the quarter also declined to RM82.9 billion from RM98.9 billion year-on-year, primarily due to lower average realised prices, partially offset by favourable foreign exchange impact.

Petronas president and group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz said the national oil firm’s 3Q performance demonstrated the focused delivery of its energy transition strategy despite a volatile energy market.

"We continued to reinvest with discipline in our core and new businesses, doubling-down on our efforts to ensure the security of energy supply for Malaysia and our customers around the world,” he said in a statement today.

For the third quarter, Petronas' cash flows from operating activities (CFFO) stood at RM18.1 billion, in line with lower profits generated during the period.

As for the nine-month period, Petronas' net profit decreased by RM13.1 billion to RM64.1 billion from RM77.2 billion a year earlier while earnings before interest, tax, depreciation and amortisation (EBITDA) declined to RM103.9 billion from RM130.2 billion.

Its revenue for the period stood at RM251.9 billion, a year-on-year decrease of RM17.5 billion, mainly due to lower average realised prices for all products in line with the declining benchmark prices, but partially offset by improved sales volumes for major products as well as favourable foreign exchange impact.

Tengku Muhammad Taufik said Petronas was on track to achieve full utilisation of the 20 per cent capital expenditure committed to intensify decarbonisation of the company’s operations and growth in new business.

"As we build on this momentum to deliver long-term sustainable value as a national oil company and continue to grow as a global energy player, Petronas remains resolute to navigate the cyclical swings in the energy market with a firm commitment to not disrupt and make every effort to provide energy that is safe, responsibly produced, cost-optimised and emissions abated,” he added.

Petronas' CFFO for the first nine months of 2023 stood at RM76.0 billion while total assets increased to RM752.2 billion as at Sept 30, 2023 compared to RM710.6 billion as at Dec 31, 2022.

As for capex, Petronas has allocated RM34.3 billion for the nine-month period, mainly attributed to upstream and gas projects.

It said domestic capex increased by 37 per cent against the same period last year mainly for investments in the Petronas Nearshore Floating LNG Project in Sabah and the Kasawari Gas Field Development and CO2 Sequestration Facilities in Sarawak.

Its shareholders’ equity increased to RM432.4 billion as at Sept 30, 2023, from RM401.6 billion as at Dec 31, 2022, primarily due to profit attributable to shareholders recorded and favourable impact from foreign exchange during the period, partially offset by dividend declared to the government.

Moving forward, Petronas said the volatility in oil and gas prices is expected to be elevated by persistent economic uncertainties and heightened concerns over global energy security amid geopolitical tensions in the Middle East.

Against this backdrop, the national oil firm anticipated lower profits for the year compared to 2022 but stressed it would continue to strengthen operational excellence in its core business while intensifying its growth and sustainability agenda in Malaysia and internationally. - Bernama

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Petronas , Energy , Kasawari , Capex , Middle East

   

Next In Business News

Oil rises as investors weigh Red Sea attacks, US rate cut outlook
Manufacturing industry at 79.8% operating capacity in 4Q23 - DoSM
China boosts Asian shares as investors brace for Nvidia earnings
Singapore Airlines outlook warning casts a shadow over air show
Rise of fast-fashion Shein, Temu roils global air cargo industry
HSBC's US$3bil China writedown mars record annual profit
Sime Darby's 2Q net profit rises to RM2.29bil, declares 3c div/share
Profit-taking on Bursa on softer appetite for global equities
HSBC full-year profit jumps 78%, trailing estimate
More job opportunities in store for SunCon in FY24

Others Also Read