Friday 29 Mar 2024
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KUALA LUMPUR (Aug 30): Petroliam Nasional Bhd (Petronas) reported a 140% year-on-year jump in profit after tax (PAT) for its second quarter of this year (2QFY22), lifted by higher oil and gas prices, and announced a dividend of RM50 billion to the government, double the RM25 billion it paid last year.

The dividend payout is its highest since 2019, when the group declared a total of RM54 billion.

“In addition to the RM25 billion dividend that has been approved in February this year, an additional RM25 billion dividend has been approved by the board, bringing the total dividend payment to the government this year to RM50 billion. This came after having considered a request from the government,” Petronas president and group chief executive officer Datuk Tengku Muhammad Taufik told the media during the group’s briefing on its 1HFY22 results on Tuesday (Aug 30).

The group's PAT for the 2QFY22 ended June 30 rose to RM23 billion from RM9.6 billion in the same quarter last year, as revenue climbed 63.4% to RM93.3 billion from RM57.1 billion, predominantly due to the favourable price impact on all products and a positive exchange rate.

The strong performance was mainly attributed to elevated oil and gas prices arising from a widening supply gap and dwindling system capacity, according to Petronas.

Earnings before interest, tax, depreciation and amortisation (Ebitda) for the quarter under review almost doubled to RM43.1 billion, from RM23.2 billion for 2QFY21.

On a quarter-on-quarter basis, Petronas’ PAT slipped 1.88% from RM23.44 billion in 1QFY22, though revenue rose 18.48% from RM78.75 billion.

For the first six months ended June 30, 2022 (1HFY22), PAT jumped 146.8% to RM46.4 billion from RM18.8 billion a year earlier, as revenue rose to RM172.1 billion from RM109.6 billion, mainly due to the favourable price impact on major products aligned with higher benchmark prices.

Cumulative Ebitda for 1HFY22 improved to RM82.7 billion from RM46 billion, mainly attributable to higher revenue. However, this was partially offset by an increase in product costs and other operating expenses.

Cash flow from operating activities stood at RM62.4 billion, up from RM32.7 billion previously, in line with higher cash from operations.

Total assets strengthened to RM699.5 billion as of June 30, 2022, compared with RM635 billion as of Dec 31, 2021, mainly due to higher cash and fund investments and receivables.

Shareholders’ equity increased to RM375.6 billion as of June 30, compared with RM350.8 billion as of Dec 31, mainly attributable to profit recorded during the period.

Capital expenditure (capex) amounted to RM18.9 billion, mainly contributed by upstream projects. Overall capex spent during the quarter was reflective of the volume of activities returning to pre-pandemic levels, noted Petronas.

The prolonged geopolitical tensions, energy supply-demand imbalances and the risk of a global slowdown continue to threaten post-pandemic economic recovery, Petronas said.

Nevertheless, it remains steadfast in strengthening its core portfolio, while pursuing its growth strategy and sustainability agenda at pace, and resilience.

Looking ahead, Muhammad Taufik said Petronas remains resolute in ensuring that energy continues to be produced and delivered responsibly and sustainably, in line with the group's three-pronged growth strategy and its Net Zero Carbon Emissions goal by 2050.

“Towards this end, Petronas’ efforts are geared to continue strengthening the energy ecosystem at home and wherever we operate. The group remains committed to creating value that supports Malaysia’s economic growth. This includes supporting the resilience of the local oil and gas ecosystem and cultivating strong partnerships towards sustaining a conducive environment for businesses to thrive.

“Even as we pursue growth and unlock greater value for our stakeholders, we will remain steadfast in giving back to societies through our wide-reaching social impact programmes,” he added.

Edited ByTan Choe Choe & Lam Jian Wyn
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