PETRONAS Posts Lower Nine-month Performance in Line with Lower Energy Prices

Source: www.gulfoilandgas.com 11/29/2023, Location: Asia

PETRONAS has recorded a lower financial performance for the nine months ended 30 September 2023 due to declining energy prices, partially offset by higher sales volume for major products.

YTD Q3 FY2023 (Analysis against YTD Q3 FY2022)

- Revenue for the first nine months of the year stood at RM251.9 billion, a decrease of RM17.5 billion as compared to the same period in 2022. This is mainly due to lower average realised prices for all products in line with the declining benchmark prices, partially offset by improved sales volumes for major products as well as favourable foreign exchange impact.

- PAT decreased by RM13.1 billion and Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined to RM103.9 billion.

- Cash Flows from Operating Activities (CFFO) stood at RM76.0 billion.

- Capital Investments (CAPEX) amounted to RM34.3 billion, mainly attributed to Upstream and Gas projects. 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.

- Total Assets increased to RM752.2 billion as at 30 September 2023 compared to RM710.6 billion as at 31 December 2022.

- Shareholders’ equity increased to RM432.4 billion as at 30 September 2023 from RM401.6 billion as at 31 December 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.

Q3 FY2023 (Analysis against Q3 FY2022)

- Revenue stood at RM82.9 billion compared to RM98.9 billion primarily due to lower average realised prices, partially offset by favourable foreign exchange impact.

- PAT stood at RM23.9 billion and EBITDA decreased to RM33.3 billion.

- CFFO stood at RM18.1 billion, in line with lower profits generated during the period.

PETRONAS President and Group CEO, Tan Sri Tengku Muhammad Taufik said:

“PETRONAS’ performance in the third quarter demonstrates the focused delivery of our 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. To date, we are on track to achieve full utilization of the 20 per cent CAPEX committed to intensify decarbonisation of our 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.

In the same stride, PETRONAS will continue to increase efforts in giving back to the societies we serve focused on investments that include empowering human capital development which saw the successful completion of MRSM Bintulu and MRSM Ranau recently. PETRONAS will not waver from its commitment to enriching the lives around us for a sustainable future.”

Outlook

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, PETRONAS anticipates lower profits compared to last year. Nevertheless, PETRONAS will continue to strengthen operational excellence in its core business while intensifying its growth and sustainability agenda in Malaysia and internationally.


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