Petronas Q1 profit slips to RM21.3b amid volatile oil prices

 

Petronas’ profit after tax for the first quarter ended March 31, 2024 slipped to RM21.3 billion from RM23.8 billion recorded in the same period last year due to higher operating expenditure and cash payments amid a “prolonged volatile pricing landscape”.

Revenue, however, rose to RM89.7 billion from RM89.3 billion previously.

“Cash flows from operating activities (CFFO) decreased by RM2.1 billion to RM23.4 billion in line with lower profits.

“Capital investment (capex) spending amounted to RM10.7 billion, primarily attributed to gas and upstream projects, including the ongoing LNG Canada Project, La Amarga Chica in Argentina as well as the Nearshore Floating LNG Project and Kasawari CO2 Sequestration Facilities in Malaysia. Domestic capex investment increased by 20 percent,” the national oil company said in a statement.

Petronas president and group chief executive officer Tengku Muhammad Taufik said the group’s steady financial performance in the first quarter demonstrates its focused execution of a clear strategy for the energy transition - developing hydrocarbons with measurable and effective decarbonisation initiatives and pursuing cleaner energy solutions.

“As we expect to face increasingly difficult headwinds for the rest of the year, Petronas will leverage the strength of its integrated portfolio to reinvest with pace and discipline.

“The group remains steadfast in its approach to generate profitable growth responsibly and sustainably. At all times, Petronas will continue to exercise prudent management of its financial commitments and debt obligations,” he said.

In the first quarter of 2024, Petronas said the oil and gas market continued to be affected by the instability of macroeconomics and geopolitical dynamics amid the energy transition, leading to “a prolonged volatile pricing landscape”.

“Petronas strives towards preserving its value and remains committed to ensuring energy security for its customers within and outside Malaysia through strategic cost management, a sustained robust portfolio, and prudent liquidity management.

“The group will continue to execute all efforts to address the increasing market volatilities while contending with stakeholders’ expectations,” it said.

In line with its Energy Transition Strategy, Petronas said it is “progressing at pace” to strengthen its core business by continuing towards completion of the Kasawari Gas Field Development in Malaysia and LNG plant in Canada by the end of the year.

In addition, Petronas is scaling up its new business with the commissioning of the inaugural interstate transmission system-connected solar project in India.

- Bernama