Petronas records profit after tax of RM23.4bil in Q1

 

Despite its favourable first-quarter performance, Petronas said ‘high oil and gas prices are expected to remain vulnerable’ with increased volatility due to geopolitical and macroeconomic uncertainties.

KUALA LUMPUR: Petronas’ profit after tax increased to RM23.44 billion for the first quarter ended March 31, 2022 (Q1 FY2022) versus RM9.22 billion a year ago in tandem with higher revenue, following an upward trend in prices partially offset by higher product costs and taxation.

Revenue stood at RM78.75 billion against RM52.55 billion a year ago, predominantly due to the price impact on major products in line with higher benchmark prices, the group said in a statement today.

“Earnings before interest, tax, depreciation and amortisation stood at RM39.55 billion, mainly attributable to higher revenue partially offset by an increase in product costs.

“Cash flows from operating activities stood at RM27.88 billion in line with higher cash from operations (Q1 FY2021: RM14.29 billion).

“Overall capital investments (capex) stood at RM7.4 billion (Q1 FY2021: RM6.64 billion) whereby domestic capex increased by close to 30%.

“Upstream remains a major contributor in overall capex spending.

“Total assets increased to RM652.3 billion as at March 31, 2022 as compared to RM635 billion as at Dec 31, 2021, mainly contributed by higher cash and fund investments,” it said.

Petronas president and group CEO Tengku Muhammad Taufik Tengku Aziz said while the national oil company’s Q1 FY2022 performance has “greatly benefited from an elevated price environment, it also clearly demonstrates the disciplined delivery of its core and growth strategy”.

“The group leveraged the strength of its integrated portfolio to provide energy that is secure and sustainable for Malaysia and our customers across the globe,” he said.

Despite a degree of recovery and growth expected with the reopening of economies, Taufik said Petronas will continue exercising prudent financial management with “a firm focus on reinvesting”, given its cautious outlook amid volatile geopolitical conditions and accelerated energy transition.

Petronas will continue to nurture a robust oil and gas services and equipment ecosystem to strengthen its resilience in responding to these challenges and effectively contribute to Malaysia’s economic growth.

“As we continue to deliver progress in our three-pronged growth strategy and net-zero carbon emissions by 2050, we are determined to do so as a progressive energy and solutions partner for our stakeholders, both at home and wherever we operate,” he said.

Despite its favourable first-quarter performance, Petronas said “high oil and gas prices are expected to remain vulnerable” with increased volatility due to geopolitical and macro-economic uncertainties.

“Petronas will continue to strengthen our operational excellence to maximise value creation while intensifying our growth and sustainability agenda in Malaysia and internationally,” the statement said. - FMT