For the first half of 2023 (1H FY2023), PETRONAS delivered steady performance amid a marked decline in energy prices, recording a revenue of RM 170.3 billion – a marginal decrease from RM 170.4 billion in the same period last year.
The Group recorded Profit After Tax (PAT) of RM 40.2 billion, a decrease of 13 per cent, mainly attributable to lower average realised prices. For the second quarter ended 30 June 2023 (Q2 FY2023), revenue decreased by 13 per cent to RM 79.9 billion amidst a low-price environment as compared to Q2 FY2022. PAT dropped by 29 per cent to RM16.4 billion from RM 23.0 billion in tandem with the lower revenue.
First Half FY2023 (Analysis against First Half FY2022)
· Revenue stood at RM 170.3 billion, as compared to RM 170.4 billion last year. This is mainly due to lower average realised prices for major products in line with the lower benchmark prices, partially offset by improved sales volumes mainly from petroleum and petrochemical products and favourable foreign exchange impact.
· PAT decreased by RM 6.2 billion mainly due to lower average realised prices.
· Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at RM 70.5 billion in line with lower profit.
· Cash Flows from Operating Activities (CFFO) stood at RM 57.8 billion, lower by seven (7) per cent compared to RM 62.4 billion previously, in line with profits generated during the period.
· Capital Investments (CAPEX) amounted to RM 21.4 billion, mainly attributable to Upstream and Gas Business projects. Domestic CAPEX increased by 48 per cent against the same period last year mainly for investments in the Nearshore Floating LNG Project (ZLNG) in Sabah and the Kasawari Gas Field Development in Sarawak.
· Total Assets strengthened to RM 742.0 billion as at 30 June 2023 compared to RM 710.6 billion as at 31 December 2022.
· Shareholders’ equity increased to RM 410.0 billion as at 30 June 2023 compared to RM 401.6 billion as at 31 December 2022 primarily due to profit attributable to shareholders recorded during the period.
Q2 FY2023 (Analysis against Q2 FY2022)
· Revenue stood at RM 79.9 billion due to lower average realised prices for all products, partially offset by improved sales volumes mainly from petroleum and petrochemical products and favourable foreign exchange impact.
· PAT was at RM 16.4 billion, in tandem with lower revenue, partially offset by lower taxation.
· EBITDA stood at RM 32.0 billion, a decrease of RM 11.1 billion, in line with lower profit.
· CFFO stood at RM 32.3 billion, lower by RM 2.2 billion in line with lower profits for the period.
PETRONAS President and Group CEO, Tan Sri Tengku Muhammad Taufik said, “The Group has resolutely progressed in our initiatives to sustain business performance despite contending with a volatile price environment in the first half of 2023. These efforts emphasized operational and commercial excellence across our value chain, sustaining upstream production and fulfilling our commitments to provide reliable energy to customers.”
“Looking ahead, we expect to face increasingly difficult headwinds, including a bearish energy market for the rest of the year on the back of slowing global economic activity. Despite near term challenges, we will continue to focus on future-proofing the organisation for the long term. This will mean scaling up investments in our core business, even as we lower emissions while investing in cleaner energy to ensure the robustness of the Group’s portfolio, aligned to our Energy Transition Strategy,” he said.
“PETRONAS believes the right thing to do is to double-down on building resilience in order to deliver long-term sustainable value as a national oil company and grow as a global energy player,” Taufik added.
Outlook
Oil and gas prices remain volatile, influenced by persistent economic headwinds and energy security concerns. Amidst these challenges, PETRONAS remains resolute in delivering energy responsibly in support of its growth and sustainability agenda, both in Malaysia and internationally.
