For the first three months of the year, Petronas Group posted a Profit After Tax of RM23.4 billion in tandem with higher revenue, following an upward trend in prices partially offset by higher product costs and taxation. The better than expected surge in profits will bode well for the country’s recovery theme.
Petronas recorded profits of RM9 billion for the same quarter in 2021 against revenue of RM52 billion, the better performance for 2022 is mainly attributed to the spike in oil price and demand growth.
Revenue for the quarter stood at RM78.8 billion, compared to the previous corresponding period, predominantly due to price impact for major products in line with higher benchmark prices. Earnings Before Interest, Tax, Depreciation, and Amortisation stood at RM39.6 billion, mainly attributable to higher revenue partially offset by an increase in product costs.
Overall Capital Investments stood at RM7.4 billion whereby domestic CAPEX increased by close to 30 percent. Upstream remains a major contributor to overall CAPEX spending.
Total assets increased to RM652.3 billion as of 31 March 2022 as compared to RM635.0 billion as of 31 December 2021 mainly contributed by higher cash and fund investments.
Datuk Tengku Muhammad Taufik, President and Group CEO, “While PETRONAS’ performance in this quarter has greatly benefited from an elevated price environment, it also clearly demonstrates the disciplined delivery of our core and growth strategy. The Group leveraged the strength of its integrated portfolio to provide energy that is secure and sustainable for Malaysia and our customers across the globe.
“Despite a degree of recovery and growth expected with the reopening of economies, PETRONAS will continue exercising prudent financial management and a firm focus on reinvesting, given our cautious outlook amid volatile geopolitical conditions and accelerated energy transition. PETRONAS will continue to nurture a robust oil and gas services and equipment (OGSE) ecosystem to strengthen our resilience in responding to these challenges and effectively contribute to Malaysia’s economic growth.
“As we continue to deliver progress in our three-pronged growth strategy and Net Zero Carbon Emissions by 2050 aspiration, we are determined to do so as a progressive energy and solutions partner for our stakeholders both at home and wherever we operate.”
Outlook
Despite favourable Quarter 1 performance, the high oil and gas prices are expected to remain vulnerable with increased volatility due to geopolitical and macro-economic uncertainties. PETRONAS will continue to strengthen its operational excellence to maximise value creation whilst intensifying our growth and sustainability agenda in Malaysia
