KUALA LUMPUR: Petroliam Nasional Bhd (PETRONAS) saw its net profit drop 32% to RM55.1bil in the financial year ended Dec 31, 2024 (FY24), impacted by lower average realised prices and favourable tax adjustments.
In a statement, the national oil company said the unfavourable realisation of the foreign currency translation reserve, following the divestment of the Engen Group, also impacted its profit.
Its revenue in FY24 fell 7% to RM320 bil from RM343.6 bil a year earlier, impacted by lower average realised prices, though partially offset by higher sales volume.
In addition, the 2024 revenue only included five months of Engen Group’s financial results until its divestment in May 2024.
PETRONAS reported lower earnings before interest, taxes, depreciation, and amortisation (Ebitda) of RM114.1bil, in line with lower profits in FY24, while cash flows from operating activities (CFFO) stood at RM102.5bil, primarily driven by Ebitda.
Its capital investments (capex) in FY24 stood at RM54.2bil in FY24, mainly attributable to activities in Malaysia.
Total assets stood at RM766.7bil while shareholders' equity rose to RM451.2bil, mainly due to profit recorded during the year.
Meanwhile, in the second half of FY24, PETRONAS net profit declined by 44% to RM22.7bil, in line with lower average realised prices and favourable tax adjustments in FY23 mainly due to recognition of deferred tax assets.
Revenue declined to RM146.4bil, in line with lower average realised prices largely from petroleum products, and the divestment of Engen Group, it said.
CLICK TO ENLARGE“PETRONAS' financial performance in 2024 remained resilient against a backdrop of continued volatility in the markets and mounting regulatory pressures caused by global geopolitical shifts.
“The steady results were delivered on the back of the group's steadfast commitment to prudent financial management and portfolio diversification,” president and group CEO, Tan Sri Tengku Muhammad Taufik said in the statement.
He said that as the industry navigates evolving market dynamics beyond 2025, PETRONAS has initiated a transformation strategy to enhance its ability to deliver value to shareholders and stakeholders, supply energy to customers, and create a positive impact on communities.
“Through firm discipline in capital allocation and cost rationalisation, strengthened collaborations and new partnership models, as well as operational and commercial excellence, PETRONAS will become more value-centric, globally competitive, and agile in responding to market changes,” he added.
Tengku Muhammad Taufik noted that the energy industry's dynamics in 2024 were shaped by geopolitical instability, evolving policies and regulations, and economic uncertainties, significantly impacting oil and gas prices.
"As we look ahead to 2025, Petronas is strategically positioned to meet rising energy demands while ensuring supply security.
"The group is set to navigate the challenges by maximising the potential of its assets, prudent financial management as well as productivity and efficiency improvements in the group's endeavour to remain a high-performing organisation," he said.
He noted that PETRONAS is dedicated to supporting the nation's energy security and economic growth, as demonstrated by the progress of the Kasawari Gas Field Development and PETRONAS Floating LNG 3, and the completion of Integrated Bekok Oil projects.
“Internationally, PETRONAS is committed to future-proofing its portfolio through strategic investments in the ongoing development of LNG plant in Canada and Upstream ventures in Angola and Indonesia.
