Petronas’ 3Q net profit almost doubles, caution volatile O&G prices

In the face of the unprecedented global energy crisis, the national O&G firm will focus on safely delivering commercial and operational excellence

PETROLIAM Nasional Bhd (Petronas) third-quarter net profit for the period ending Sept 30, 2022 (3Q22), almost doubled to RM30.8 billion from RM16.3 billion reported in 2021.

Ebitda surged 80.6% to RM47.5 billion versus RM26.3 billion previously.

The group revenue was up 60.5% at RM99.2 billion compared to RM61.8 billion in 3Q21 predominantly due to favourable price impact for major products and favourable impact of exchange rate.

Cashflows from operating activities (CFFO) stood at RM20.7 billion compared to RM21.8 billion in 3Q21 following higher net receivables in line with higher prices.

“Petronas’ 3Q financial performance demonstrates our relentless focus on the group’s operational and commercial excellence. We continue to ensure the reliability of our operations to leverage the recovery in global energy demand with the safety of our people and assets as our highest priority,” its CEO Datuk Tengku Muhammad Taufik said in a statement yesterday.

He added that Petronas will continue to preserve and strengthen its core portfolio while growing the new energy business to deliver safer, cleaner and faster solutions to their customers at competitive prices, reinforcing their 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 (NZCE 2050) aspiration to contribute towards a responsible and just energy transition,” he said.

However, Petronas cautioned that oil and gas (O&G) prices will remain volatile, influenced by intensifying geopolitical and economic headwinds. 

“In the face of the unprecedented global energy crisis, Petronas will focus on safely delivering commercial and operational excellence. Petronas will continue to invest responsibly towards ensuring energy supply security while pursuing its growth strategy and NZCE 2050 target,” it said.

Petronas said it has delivered a robust performance in the first nine months of 2022 (9M22) in an energy market that continues to be volatile combined with the acceleration of the energy transition.

The group’s strong performance was driven by its focus to safely deliver commercial and operational excellence across the integrated value chain, supported by high commodity prices.

For 9M22, the group net profit more than doubled to RM77.2 billion from RM35.2 billion a year earlier.

Ebitda for the said period stood at RM130.2 billion compared to RM72.4 billion in the same period previously.

Revenue improved to RM271.3 billion compared to RM171.4 billion in the corresponding period last year, mainly due to favourable price impact for major products aligned with higher benchmark prices.

CFFO increased to RM83.1 billion while total assets strengthened to RM725.6 billion compared to RM635 billion as at Dec 31, 2021.

Petronas said its shareholders’ equity increased to RM386.2 billion as at Sept 30, 2022, compared to RM350.8 billion as at Dec 31, 2021, mainly attributable to profit recorded during the period.

“The group’s capital investments stood at RM27.4 billion, an increase of 34% compared to the same period last year. Upstream business remains a major contributor,” it said.

Muhammad Taufik said Petronas will continue to focus on delivering safe performance to maximise its cash generators and grow the business portfolio, in line with its three-pronged growth strategy and NZCE 2050 target.

“Petronas remains fully determined to strengthen its resilience and seize new opportunities, by staying true to prudent financial management and firm capital discipline in investing responsibly to sustainably deliver profitable growth,” he said.

As it pursues these efforts, he said Petronas remains grounded in discharging its responsibilities to its shareholders including the nurturing of a resilient local O&G services and equipment ecosystem, and contributing to the well-being of the communities where they operate.

“As we look forward, Petronas is resolute in accelerating growth with increased investments, particularly in future-proofing our portfolio in an environment that is increasingly uncertain and volatile. The group has taken a long-term strategic positioning in response to the energy transition with the launching of the Petronas NZCE 2050 Pathway. 

“We are taking deliberate steps to unlock new value from our core portfolio with a focus on the decarbonisation of our operations and will pursue attractive opportunities in cleaner energy solutions.

“Anchored on our statement of purpose, Petronas remains fully committed to providing the world with the energy it needs to achieve our shared aspiration for a lower-carbon future in a just and responsible manner,” he concluded. — TMR