The strong growth is attributed to O&G prices arising from a widening supply gap and dwindling system capacity

by S BIRRUNTHA / TMRpic

PETROLIAM Nasional Bhd’s (Petronas) posted a more than double net profit in the first half ended June 30, 2022 (1H22) with RM46.6 billion from RM18.8 billion a year ago.

This was on the back of a revenue of RM172.1 billion compared to RM109.6 billion in 1H21.

The national oil and gas (O&G) company said the strong performance was mainly attributed to elevated O&G prices arising from a widening supply gap and dwindling system capacity.

For the second quarter ended June 30, 2022 (2Q22), Petronas’ net profit stood at RM23 billion compared to RM9.6 billion previously, in tandem with higher revenue following an upward trend in prices partially offset by higher product costs and taxation.

The group recorded higher revenue of RM93.3 billion compared to RM57.1 billion a year ago, predominantly due to the favourable price impact for all products and favourable impact of the exchange rate.

Meanwhile, Petronas’s Ebitda stood at RM43.1 billion, which improved from RM23.2 billion in the same quarter last year in line with higher revenue.

Cashflows from operations improved to RM34.5 billion from RM18.4 billion in the same quarter last year with higher cash from operations.

The group’s total assets strengthened to RM699.5 billion in 1H22 compared to RM635 billion as at Dec 31, 2021, mainly contributed by higher cash and fund investments and receivables.

Commenting on the financial performance, Petronas president and group CEO Datuk Tengku Muhammad Taufik Tengku Aziz said the group has delivered a robust performance for 1H22 amid continued volatility in the energy market and accelerated energy transition.

He added that in pursuing growth, the group remained focused on its intent of delivering energy that is secure, accessible and sustainable to Malaysia and customers across the world.

“Looking ahead, aligned to our three-pronged growth strategy and net zero carbon emissions by 2050 aspiration, Petronas remains resolute in ensuring that energy continues to be produced and delivered responsibly and sustainably.

“Towards this end, Petronas’ efforts are geared to continue strengthening the energy ecosystem at home and wherever we operate,” he said during the group’s 1H22 financial performance briefing in Kuala Lumpur today.

Tengku Muhammad Taufik noted that to this end, Petronas remains committed to creating value that supports Malaysia’s economic growth.  

He said this includes supporting the resilience of the local O&G ecosystem and cultivating strong partnerships towards sustaining a conducive environment for businesses to thrive.

“Even as we pursue growth and unlock greater value for our stakeholders, we will remain steadfast in giving back to societies through our wide-reaching social impact programmes,” he said.

On outlook, Tengku Muhammad Taufik said the prolonged geopolitical tensions, energy supply-demand imbalances and the risk of a global slowdown continue to threaten post-pandemic economic recovery.

He added that Petronas will remain steadfast in strengthening its core portfolio while pursuing its growth strategy and sustainability agenda at pace and resilience.