PETRONAS has posted a profit after tax (PAT) of RM23.8 billion for the first quarter of 2023, a two per cent decrease from the fourth quarter of 2022. Compared to the previous corresponding quarter, PAT recorded a two per cent improvement. The Group revenue for the quarter was RM90.4 billion, a 15 per cent drop from the fourth quarter of 2022. The reported result is a 16 per cent increase compared with the revenue registered in the first quarter of 2022.
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.
Q1 FY2023 Results (Analysis against Q1 FY2022)
Revenue improved to RM90.4 billion, largely due to improved sales volumes and favourable impact from foreign exchange. This was partially offset by lower average realised prices from major products.
PAT stood at RM23.8 billion and recorded EBITDA of RM38.6 billion.
Cash Flows from Operating Activities (CFFO) stood at RM25.5 billion, lower compared with the corresponding quarter, in line with lower cash from operations.
Capital Investments (CAPEX) amounted to RM10.5 billion, mainly contributed by Upstream and Gas projects. Domestic CAPEX increased by 44 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 in Sarawak.
Total Assets strengthened to RM713.6 billion as at 31 March 2023.
Shareholders’ Equity decreased to RM388.7 billion as at 31 March 2023.
PETRONAS 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.
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.”
Outlook
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.
