KUALA LUMPUR (Aug 27): Petroliam Nasional Bhd (Petronas) achieved a net profit of RM9.6 billion for the second quarter ended June 30, 2021 (2QFY21), a marginal 3.3% growth against RM9.29 billion in the preceding quarter, 1QFY21.
Nonetheless, it is a vast improvement compared with a net loss of RM21 billion in the corresponding quarter last year.
Revenue increased 8.6% quarter-to-quarter (q-o-q) to RM57.1 billion in 2QFY21 against RM52.54 billion in 1QFY21. On a yearly basis, Petronas' revenue leapt 68% from RM34 billion a year ago.
Meanwhile, its earnings before interest, tax, depreciation and amortisation (EBITDA) were marginally higher at RM23.2 billion versus RM22.9 billion in 1QFY21. Compared with the corresponding quarter last year, 2QFY21 EBITDA were more than doubled against RM9.1 billion in 2QFY20.
The upward trend in crude oil prices, which rebounded from below US$40 per barrel to near US$75 over the past 10 months, helped fuel the earnings recovery at the national oil firm, which slipped into massive losses in FY20.
Petronas attributed the improved earnings to lower impairment as a result of firmer crude oil prices, larger sales volume and lower operating expenditure.
On the oil and gas industry's outlook, the group expects a rise in oil supply while fresh lockdowns triggered by the emergence of new Covid-19 variants may impact the price and demand recovery.
"Petronas will continue to focus on maximising value by leveraging the group's integrated value chain to capture new opportunities and mitigate the impact of market uncertainties," it said.
For the six months ended June 30, 2021, the national oil firm posted a cumulative net profit of RM18.9 billion compared with a net loss of RM16.5 billion a year ago.
Revenue went up 17% to RM109.6 billion for the six-month period, against RM93.6 billion in the first half of FY20.
Cumulative EBITDA expanded 57% to RM46.1 billion from RM29.4 billion.
The national oil firm's operating cash flow increased by 24% to RM32.7 billion compared with RM26.3 billion previously, thanks to improved operating profit.
For the upstream segment, Petronas highlighted six exploration discoveries in 1H21 — four discoveries offshore Sarawak and Sabah in Malaysia, one discovery offshore East Java in Indonesia, and one discovery offshore Brunei.
Total daily production average of 2.34 million barrels of oil equivalent (boe) per day recorded in 1HFY21 is higher than the 2.25 million boe per day recorded in 1HFY20, mainly driven by higher gas production due to increase in demand, both in domestic and international operations.
Meanwhile, for the downstream segment, Petronas said the segment recorded stable operations, reporting 93.1% Overall Equipment Effectiveness, similar to the same period last year.
"Our domestic operations, Petronas Dagangan Bhd recorded improved financial performance following the improved economic activities compared to the same period last year," it noted.
Petronas president and group chief executive officer Tengku Muhammad Taufik said Petronas' solid performance was attributable to its response in enabling continued operational excellence during a period of favourable market conditions in 1HFY21.
"This was made possible by the dedicated and selfless service of our frontliners and employees group-wide. Petronas was thus able to leverage its integrated value chain with a sharper focus on commercial excellence and preserve healthy levels of liquidity, which have proven to be advantageous.
"Amidst an uncertain outlook, the group remains steadfast in delivering cost-effective solutions with a lower carbon footprint by advancing its technology and digitalisation agenda," said Taufik.
“Petronas will continue to progress its three-pronged growth strategy at pace and intensify its sustainability efforts to secure new opportunities in the energy transition,” he added.