PETRONAS NET PROFIT FOR Q1 INCREASES TO RM9.3 BLN

KUALA LUMPUR, May 31 -- Petronas’ net profit for the first quarter ended March 31, 2021 increased to RM9.3 billion from RM4.5 billion recorded in the same quarter last year.

Revenue, however, was lower at RM52.55 billion from RM59.59 billion previously, the national oil company said in a statement today.

It said the higher profit was in line with lower overall group costs incurred, while the lower revenue continued to be attributable to the lower sales volume of petroleum products, liquefied natural gas (LNG) and natural gas, coupled with the effect of the stronger ringgit against the US dollar exchange rate.

However, it said earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 13 per cent to RM22.9 billion from RM20.3 billion in the corresponding period last year.

Cash flows from operating activities stood at RM14.3 billion, a decrease of 19 per cent from RM17.6 billion mainly due to higher inventory as well as lower receipts from customers while total assets increased to RM593.8 billion from RM574.1 billion previously, mainly contributed by higher cash and cash equivalents as well as higher receivables, it said.

“The group’s capital investments amounted to RM6.7 billion, mainly attributed to upstream projects,” it said.

The group said the first quarter results also demonstrated a recovery from the loss after tax of RM1.1 billion posted in the fourth quarter ended Dec 31, 2020.

President and group chief executive officer Tengku Muhammad Taufik said Petronas’ financial performance in the first quarter of 2021 reflects its continuing commitment to commercial and operational excellence while preserving a healthy level of liquidity to strengthen its resiliency.

“The deliberate steps taken throughout 2020 have provided the group with a stronger foundation to better withstand volatile market conditions while we contend with the global energy transition.

“Even as Petronas navigates the significant challenges and uncertainties posed by the ongoing COVID-19 pandemic, it will continue to intensify efforts to achieve its Net Zero Carbon Emissions by 2050 aspiration,” he said.

In doing so, he said Petronas remained committed to executing its three-pronged growth strategy to become a progressive energy and solutions partner enriching lives for a sustainable future.

On the outlook, the company said oil and gas industry demand is expected to improve following the global vaccine roll-out programme, but recovery prospects remain uncertain due to risks of COVID-19 resurgence. 

“Petronas will continue to drive for commercial and operational excellence on the back of modest oil price recovery while preserving healthy levels of liquidity,” it added.

-- BERNAMA