KUALA LUMPUR (Dec 26): Petroliam Nasional Bhd’s (Petronas) quarterly net profit slumped to near four-year low of RM4.11 billion for the fourth quarter ended Dec 31, 2019 (4QFY19), down 71.3% from RM14.32 billion a year ago.

The national oil company has proposed dividends of RM24 billion for the financial year ending Dec 31, 2019 (FY19) to the federal government.

Petronas' earnings were dragged down by net impairment on assets and lower revenue. The downward impact was offset by lower tax expenses.

The quarterly profit was the lowest earnings since 2QFY16, when Petronas posted a net profit of RM1.62 billion and the average Brent price was at US$47.03.

The group’s pre-tax profit plunged 55.8% to RM9.02 billion compared with RM20.43 billion in 4QFY18.

Quarterly revenue fell 8.39% to RM64.04 billion from RM69.9 billion in 4QFY18. The drop in revenue was due to lower average realised prices for major products, offset by higher sales volume for petroleum products and crude oil and condensates.

Operating profit in 4QFY19 shrank 52.9% to RM10.48 billion, from RM22.26 billion a year ago.

The FY19 dividend that Petronas will declare is lower than RM54 billion in FY18. The bumpy dividend for FY18 included a special dividend of RM30 billion to fund the government’s outstanding goods and services tax refund.

For FY19, Petronas’ annual net profit fell 26.8% to RM40.47 billion from RM55.13 billion. The lower earnings were attributed to net impairment on assets and lower revenue.

Annual revenue fell 4.27% to RM240.26 billion, from RM250.98 billion in FY18, arising from lower average realised prices recorded for major products. Its annual operating profit fell 26% to RM59.69 billion, from RM80.75 billion in FY18.

In the year, cash flow from operating activities expanded to RM90.8 billion, from RM86.3 billion, while free cash flow rose 9% to RM43 billion from RM39.4 billion.