Petronas back in black with RM48.6b profit in FY21 on higher oil prices

The strong performance was supported by surging commodity prices driven by the recovery in global energy demand 


PETROLIAM Nasional Bhd (Petronas) returned to the black in the financial year ended Dec 31, 2021 (FY21), after registering a profit of RM48.6 billion against RM21.03 billion in losses for FY20. 

Revenue for the period increased 39% to RM248 million from RM178.7 million, underpinned by favourable price impact for major products in line with higher average realised prices. 

The national oil and gas company said the strong performance was supported by surging commodity prices driven by the recovery in global energy demand as key economies reopened and travel restrictions eased amid higher Covid-19 vaccination rates around the world. 

In 2021, the average Brent crude was at US$70.91 (RM297.11) per barrel versus US$41.67 per barrel in 2020. 

Accordingly, the group’s Ebitda rose to RM100.5 billion, primarily attributed to higher revenue, partially offset by an increase in product costs. 

The group’s cashflow from operating activities improved to RM78.6 billion. 

Total assets increased to RM635 billion as of FY21, compared to RM574.1 billion as of FY20, primarily contributed by higher cash and fund investments and higher receivables. 

Shareholder’s equity increased to RM350.9 billion as of FY21 from RM330.6 billion a year earlier, mainly attributed to the profit recorded during the period. 

Capital expenditure for the period was RM30.5 billion, mainly attributed to upstream projects. 

The group has maintained a dividend payout to the government at RM25 billion as guided last year. 

For the fourth quarter ended Dec 31, 2021 (4Q21), Petronas turned to a profit of RM13.35 billion from losses of RM1.14 billion a year ago, while quarterly revenue rose 73.9% year-on-year to RM76.57 billion from RM44.04 billion. 

The group noted that its 4Q21 results saw an improved Brent price mainly due to an increase in economic activities globally coupled with oil supply disruptions in Ecuador, Nigeria and Libya. 

Commenting on the financial results, Petronas president and group CEO Tengku Datuk Muhammad Taufik Tengku Aziz (picture) said the group’s strong performance in 2021 bears testimony to the dedication of its workforce. 

He added that coupled with a robust integrated energy portfolio, Petronas has remained resilient after two years of extreme disruptions to the energy ecosystem, positioning the group better to capitalise on market recovery. 

“However, even as we progress with relatively steadier footing, the group’s focus will continue to be in safely delivering commercial and operational excellence. 

“We remain committed to exercising discipline when reinvesting to both strengthen our core and grow our portfolio, even as we prudently manage our financial commitments and debt obligations.

“We are determined to seize new opportunities for sustainable profitable growth as we uphold our responsibility as Malaysia’s national oil company and lay the foundation for our future growth,” he said in a separate statement.

He added that 2022 will be a year that Petronas will need to step up even more meaningfully in pursuing its purpose to become a progressive energy and solutions partner, enriching lives for a sustainable future.

Aligned to the group’s three-pronged growth strategy and netzero carbon emissions by 2050 aspirations, he noted that the group is committed to ensuring that energy can continue to be produced and delivered responsibly and sustainably. 

On future prospects, Tengku Muhammad Taufik said the industry is expected to continue to operate in a challenging environment due to market uncertainties and heightened geopolitical risks. 

Amid these challenges, he said the group will focus on executing its growth plans and sustainability efforts while remaining committed to delivering operational and commercial excellence.