PETALING JAYA: Petroliam Nasional Bhd’s (Petronas) net profit for the year ended Dec 31, 2023 (FY2023) fell 20.6% to RM80.7 billion from a record high of RM101.6 billion in FY2022 on lower average realised prices.
The national oil and gas (O&G) corporation’s full-year revenue dropped 7.7% to RM343.6 billion from RM372.3 billion in FY2022.
Net profit for the fourth quarter ended Dec 31, 2023 (Q4 FY2023) tumbled 32% to RM16.6 billion from RM24.4 billion a year earlier, attributed to lower prices.
Quarterly revenue fell 12% to RM91.7 billion from RM104.2 billion previously.
President and group CEO Tengku Muhammad Taufik Aziz said the group’s revenue was partially cushioned by higher sales volume mainly from petroleum products and impact from foreign exchange.
The lower revenue was mainly due to lower average realised prices for all products in line with declining benchmark prices.
“This was partially offset by improved sales volumes, mainly from petroleum products and foreign exchange impact,” he said.
Lower dividend for government
The group intends to distribute its 2024 dividend payout of RM32 billion to the government between April and September of this year, said Tengku Taufik.
This is a 20% drop from the RM40 billion dividend paid to the government in FY2023, and lower than the RM50 billion paid in FY2022.
“This decision follows confirmation from the board after a meeting held yesterday,” he added.
The group’s capital expenditure (capex) stood at RM52.8 billion for FY2023, up 5% from RM50.1 billion the previous year, mainly for upstream and gas projects.
As at end-December 2023, total assets increased to RM773.3 billion from RM710.6 billion, while shareholders’ equity expanded to RM443.5 billion from RM401.6 billion.
Tengku Taufik emphasised that Petronas remains committed to maintaining prudent financial management and discipline.
Additionally, the group will intensify efforts in emissions reduction within its core operations while actively seeking cleaner energy solutions.
He also stated that Petronas has formulated a comprehensive strategy for the energy transition to pursue a balanced approach by providing emissions-abated solutions while simultaneously establishing the groundwork for a new energy system.
On its outlook, he said the global economy began 2024 with a fragile stance due to a less robust economic performance towards the end of 2023. This has resulted in businesses and consumers exercising caution in their spending and investment decisions.
“Amid these macroeconomic headwinds, the oil and gas markets face uncertainties due to slower global demand, while supply risks are heightened following increased geopolitical tensions in the Middle East and Europe,” Tengku Taufik added. - FMT
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