Revenue for the period also up 50% YoY on higher average realised prices for major products
by NUR HANANI AZMAN / pic by MUHD AMIN NAHARUL
PETROLIAM Nasional Bhd (Petronas) stated that higher energy prices and lower impairment on assets enabled it to post RM16.3 billion in profit after tax (PAT) for the third quarter ended Sept 30, 2021 (3Q21) compared to loss after tax (LAT) of RM3.4 billion in suffered in 3Q20.
Revenue for the period rose 50% year-on-year (YoY) to RM61.8 billion on higher average realised prices for major products which was partially offset by lower sales volume of crude oil and condensates.
Petronas president and CEO Datuk Tengku Muhammad Taufik Tengku Aziz said the 3Q21’s financial performance demonstrates the national oil company’s (NOC) relentless focus on operational and commercial excellence.
He said Petronas will continue to ensure reliability of operations to leverage on the recovery in global energy demand with the safety of its people and assets as the highest priority.
“Petronas will preserve and strengthen its core portfolio while growing the new energy business to deliver safer, cleaner and faster solutions to our customers at competitive prices, reinforcing our role as an energy partner.
“As we look ahead, Petronas will continue to pursue its three-pronged growth strategy and ‘Net Zero Carbon Emissions by 2050’ aspiration to contribute towards a responsible and just energy transition,” he said in a statement yesterday.
Petronas expects the current trajectory of the oil and gas (O&G) industry to continue, given the modest recovery in demand underpinned by improvements of economic activities globally.
“Petronas will remain steadfast in driving operational and commercial excellence to improve its liquidity and profitability, in pursuit of its growth strategy,” it added.
For the first nine months of the year (9M21), Petronas recorded PAT of RM35.2 billion compared to LAT of RM19.9 billion in 9M20 helped by higher commodity prices, underpinned by the rebound in energy demand as key economies recover from the impact of the Covid-19 pandemic.
Revenue for 9M21 rose 27% YoY to RM171.4 billion on higher average realised prices for major products coupled with higher sales volume, mainly for liquefied natural gas and sales gas.
Cashflows from operating activities stood at RM54.5 billion, up 67%, in line with higher cash operating profit.
Group total assets increased to RM618.9 billion as at Sept 30, 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.
Capital investments amounted to RM20.4 billion, mainly attributed to upstream projects.
Upstream operations recorded a total daily production average of 2.27 million barrels of oil equivalent (boe) per day for 9M21 compared to 2.19 million boe per day in 9M20.
The increase was mainly due to higher natural gas production contributed by higher demand for both Malaysia and international operations, the Petronas statement yesterday noted. This was partially offset by lower crude oil production.
The NOC’s downstream business recorded stable operations in the 3Q with overall equipment effectiveness at 93.4%, supported by reliable plant performance at domestic refineries.
The company stated that it has secured up to 640.7 million standard cu ft per day of natural gas supply deals from new and existing customers.