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Impressive Q3 for Petronas | The star

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KUALA LUMPUR: Malaysian state-owned energy company Petroliam Nasional Bhd (Petronas) reported better financial results, posting highest net profit of RM16.31 billion for the third quarter ended September 30 (Q3’21) since 2017.

According to its quarterly report posted on its website, its net income for the quarter was supported by higher average realized prices and net asset write-backs.

The state-owned energy company’s latest profits were the highest since the fourth quarter of 2017, when it posted a net profit of RM18.2 billion on the back of a turnover of 61 , RM 8 billion.

For the third quarter of 21, Petronas said its earnings before interest, taxes, depreciation and amortization (EBITDA) increased 88% to RM 26.3 billion from RM 14 billion in the corresponding quarter last year, in line with increased revenue partially offset by higher product costs.

In addition, the group’s revenue jumped 50% to RM 61.8 billion from RM 41.1 billion in the corresponding period a year ago, mainly due to favorable average realized prices for main products, which were partially offset by lower sales volume mainly of crude oil and condensates.

Petronas HQ

For the nine-month period ended September 30 (9M21), Petronas’ net profit climbed more than 100% to RM 35.2 billion from a net loss of RM 19.9 billion a year ago.

“The higher net profit is accompanied by higher EBITDA and a shift from net impairment losses from the previous period to a reversal of net worth from the current period as a result of the upward trend in prices.

“Excluding write-backs and losses, the group would have recorded an after-tax profit of RM 34.5 billion, which is RM 24.2 billion higher than the after-tax profit excluding impairment losses for the same period in 2020. “, did he declare.

Meanwhile, the group’s turnover increased by 27% to reach RM171.4 billion in the nine-month period, from RM134.7 billion in the corresponding period a year ago. year, mainly due to a favorable impact on the prices of the main products in line with higher average realized prices.

This was partially offset by the effect of the weakening of the greenback against the ringgit.

Overall, Petronas explained that the improvement in performance was attributed to rising commodity prices, supported by rebounding energy demand as major economies recovered from the impact of the Covid-19.

In line with rising revenues, the group’s EBITDA increased 67% to RM 72.4 billion in the nine-month period, from RM 43.4 billion a year ago.

Petronas Group Chairman and CEO Datuk Tengku Muhammad Taufik (pictured) said the third quarter financial performance reflects the state-owned energy company continues to focus on operational and business excellence.

“We continue to ensure the reliability of our operations to take advantage of recovering global energy demand, with the safety of our people and assets our top priority.

“Petronas will continue to preserve and strengthen its core portfolio while developing the new energy business to provide safer, cleaner and faster solutions to our customers at competitive prices, thus strengthening our role as an energy partner”, a- he added.

As of September 30, Petronas’ total assets increased to RM 618.9 billion from RM 574.1 billion at the end of December 2020, mainly due to higher cash and fund investments as well as receivables. Thus, capital expenditure totaled RM20.4 billion, mainly attributed to upstream projects.

However, Petronas noted that its debt-to-equity ratio increased to 23.7% as of September 30 of this year, from 21.3% as of December 31 of last year, mainly due to the issuance of notes and d ‘obligations.

Going forward, Muhammad Taufik said the group will continue to pursue its three-pronged growth strategy and net zero carbon emissions by 2050, its aspiration to contribute to a responsible and fair energy transition.

However, he estimated that the current trajectory of the oil and gas industry should continue, given the modest recovery in demand supported by improving economic activities globally.

“Petronas will remain committed to promoting operational and business excellence to improve its liquidity and profitability, in pursuit of its growth strategy,” added Muhammad Taufik.