KUALA LUMPUR: Petroliam Nasional Bhd (PETRONAS) will keep its focus on ensuring energy security and fostering continued collaboration with stakeholders to safeguard Malaysia’s interests and support nation-building efforts.
President and group chief executive Tan Sri Tengku Muhammad Taufik commented that the group will continue to strengthen collaboration with forward-looking partners both at home and abroad, to further accelerate the adoption of technologies and the execution of its energy transition strategy to pave the way for future growth.
Releasing its results for the second quarter (2Q24) and first half of the year (1H24) yesterday, PETRONAS posted a 1H24 revenue of RM171.7bil, inching up from RM169bil in the corresponding period last year, although net profit saw a 19.2% year-on-year (y-o-y) decline to RM32.4bil.
The group attributed the growth in revenue to an impact from foreign exchange, while pointing to the deconsolidation of subsidiaries and higher taxation during the first six months of the year for its lower net earnings.
Despite the marginally lower profits, PETRONAS reported a one-fifth y-o-y increase in its total capital investments (capex) to RM25.7bil, mainly from the development and exploration activities in its upstream business.
“Domestic capex increased by 18% against the same period last year,” it said in a statement released yesterday.
Meanwhile, total assets went up 3.3% y-o-y to RM798.6bil as at June 30, 2024, compared to RM773.3bil as at Dec 31, 2023, mainly contributed by capital investments during the financial period.
Shareholders’ equity increased to RM443.9bil, due profit recorded during the financial period, which was partially offset by dividends declared to shareholders amounting to RM32bil.
On PETRONAS’ upstream business, some of its activities included recording an average total daily production of 2.48 million barrels of oil equivalent (boe) per day in 1H24, higher than the 2.43 million boe per day recorded for the same period in 2023, mainly due to higher natural gas production within and outside Malaysia.
Concurrently, it expanded its portfolio in Indonesia through a 20-year extension for the Ketapang Production Sharing Contract (PSC) and a multi-year contract for the Bobara Working Area, while acquiring a 50% share of the Papua New Guinea Petroleum Prospecting License.
At the same time, downstream operations were stable with overall equipment effectiveness of 88.7% comparable with 89% recorded in 1H23.
However, it said overall marketing sales volume stood at 12.35 billion litres, a decrease from 12.81 billion litres in 1H23, which was due to the divestment of stakes in Engen Limited.
Labelling the group’s 1H24 performance as commendable amidst continued market volatility and global economic slowdown, Muhammad Taufik said it is a testimony to PETRONAS’s commitment to prudent financial management and the strength of its diverse portfolio.
Reporting that the group has since its inception injected RM1.4 trillion into the nation’s economy through dividends, taxes and cash payments, he added that the group is expecting to see more dynamic shifts in the operating landscape for the rest of the year.
“PETRONAS is steadfast in pushing on all fronts across our integrated business with a clear strategy and firm capital discipline, anchored on our purpose as a progressive energy and solutions partner to all the societies we serve,” he remarked.
On a separate note, Muhammad Taufik Tengku said in response to media questions regarding the discussions between PETRONAS and the Sarawak government over the state’s gas distribution, that both parties remain strategic partners in the development of hydrocarbon resources in the state.
“Both sides recognise that each has aspirations and duties and it is in that spirit that conversations are happening now. We want to continue being a part of the equation,” he said.
He noted that under the Petroleum Development Act 1974, PETRONAS was vested with the ownership and exclusive rights to explore, manage and develop petroleum resources for the Malaysian federation.
"There is an obligation to fulfil and our job is to maximise Malaysia’s hydrocarbon resources to contribute back to the nation, to contribute to its growth and uphold what was envisaged under that federal arrangement," he said.
