A sign for a Petroliam Nasional Bhd (Petronas) gas station stands near the Petronas KLCC Twin Towers in Kuala Lumpur, Malaysia. - Goh Seng Chong/Bloomberg
KUALA LUMPUR: Petroliam Nasional Bhd (PETRONAS), which saw its profit after tax (PAT) fall 11% in the first quarter (1Q24), will continue efforts to address increasing market volatilities while meeting stakeholders' expectations.
The national oil and gas group said for the first quarter of 2024, the oil and gas market continued to be affected by the instability of the macroeconomics and geopolitical dynamics amid the energy transition that leads 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 a statement.
In the first quarter, PETRONAS posted a PAT of RM21.3bil, down from RM23.8bil in the same quarter last year, due to higher operating costs and lower realised prices.
Its earnings before interest, tax, depreciation and amortisation (Ebitda) stood at RM36.2bil in 1Q24, down 6% from RM38.6bil in 1Q23 mainly due to higher operating expenditure and cash payments.
Revenue was largely flat at RM89.7bil from RM89.3bil a year ago.
Its cash flows from operating activities (CFFO) decreased by RM2.1bil to RM23.4bil in line with lower profits.
Capital investments (capex) spending amounted to RM10.7bil 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%.
Its total assets strengthened to RM796.3bil while shareholders’ equity declined to RM434.4bil as at March 31, attributable to dividends declared to shareholders amounting to RM32.0bil.
“PETRONAS’ steady financial performance in the first quarter demonstrates our focused execution of a clear strategy for the energy transition: developing hydrocarbons with measurable and effective decarbonisation initiatives and pursuing cleaner energy solutions,” president and group CEO Tan Sri Tengku Muhammad Taufik said in a statement.
“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 added.
During the financial period, it paid a dividend of RM3bil, being partial payment of the approved dividend of RM320,000 per ordinary share amounting to RM32bil declared on March 14, 2024.
The remaining amount of the dividend amounting to RM29bil will be paid in installments between April and December 2024.
