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Tuesday, November 30, 2021

Petronas records profit in third quarter


Petronas recorded revenue of RM61.8 billion in the third quarter, an increase of 50% from the corresponding quarter last year. (AFP pic)

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) registered a profit after tax of RM16.3 billion in the third quarter ended Sept 30 (Q3FY21) from a loss after tax of RM3.4 billion in the same period last year.

This was in tandem with higher earnings before interest, taxes, depreciation, and amortisation (EBITDA) and lower net impairment losses on assets.

The national oil firm also recorded revenue of RM61.8 billion, an increase of 50% from RM41.1 billion recorded in the corresponding quarter last year, mainly due to higher average realised prices for major products but was partially offset by lower sales volume mainly from crude oil and condensates.

For the first nine months of the year, the group recorded a profit after tax of RM35.2 billion, more than a 100% increase from the loss after tax of RM19.9 billion in the corresponding period last year, in tandem with higher EBITDA, coupled with lower net impairment losses on assets.

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Revenue for the period increased 27% to RM171.4 billion from RM134.7 billion in the corresponding period last year, mainly due to favourable average realised prices for major products, coupled with higher sales volume for liquefied natural gas (LNG) and sales of gas.

“Petronas’ third quarter financial performance demonstrates our relentless focus on the group’s operational and commercial excellence.

“We continue to ensure the reliability of our operations to leverage the recovery in global energy demand with the safety of our people and assets as our highest priority,” said president and group chief executive officer Tengku Muhammad Taufik Tengku Aziz in a statement today.

In the third quarter, Petronas’ cash flows from operating activities (CFFO) more than tripled to RM21.8 billion from RM6.3 billion, in line with higher cash operating profit and a positive working capital movement.

Tengku Muhammad said Petronas would continue to preserve and strengthen its core portfolio, while growing the new energy business to deliver safer, cleaner and faster solutions to its customers at competitive prices, reinforcing its role as an energy partner.

Petronas said its CFFO in the first nine months of 2021 stood at RM54.5 billion, up by 67% from RM32.6 billion, in line with the higher cash operating profit.

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Its total assets increased to RM618.9 billion as at Sept 30, 2021 compared to RM574.1 billion as at Dec 31, 2020.

Shareholders’ equity increased to RM337.5 billion compared to RM330.6 billion as at Dec 31, 2020, mainly attributable to profit recorded during the period, said Petronas.

Its capital investments amounted to RM20.4 billion, mainly due to upstream projects.

The national oil company’s upstream operations recorded a total daily production average of 2.27 million barrels of oil equivalent (boe) per day for the first nine months of 2021, an increase from 2.19 million boe per day in the same period in 2020, mainly due to higher natural gas production contributed by higher demand for both Malaysia and international operations.

However, this was partially offset by lower crude oil production, said Petronas.

The group said the current trajectory of the oil and gas industry was expected to continue, given the modest recovery in demand underpinned by improvements in economic activities globally.

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Petronas said it would remain steadfast in driving operational and commercial excellence to improve its liquidity and profitability, in pursuit of its growth strategy.

“As we look ahead, Petronas will continue to pursue its three-pronged growth strategy and net-zero carbon emissions by 2050 aspirations to contribute towards a responsible and just energy transition,” said Tengku Muhammad. - FMT

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