Petronas 2023 profit decreases to RM80.7b
Published on: Saturday, March 16, 2024
By: Bernama
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) posted a lower net profit of RM80.7 billion in the financial year ended Dec 31, 2023 (FY2023) compared to RM101.6 billion in the preceding year, mainly impacted by lower average realised prices.
Revenue in FY2023 slipped to RM343.6 billion compared to RM372.3 billion previously, Petronas president/group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz said in a statement.
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“The low revenue was mainly due to lower average realised prices for all products in line with declining benchmark prices. This is partially offset by improved sales volumes, mainly from petroleum products and foreign exchange impact,” he said at the announcement of Petronas’ financial performance for FY2023 here.
For the fourth quarter of FY2023, the national oil company’s net profit decreased to RM16.6 billion from RM24.4 billion, while revenue dropped to RM91.7 billion from RM104.2 billion previously.
Capital Investments amounted to RM52.8 billion in FY2023, mainly attributed to upstream and gas projects.
Tengku Muhammad Taufik said the domestic capital expenditure increased by 41 per cent against FY2022 mainly for open investments in the Petronas nearshore floating liquefied natural gas project in Sabah and the Kasawari Gas Field Development and carbon dioxide (CO2) Sequestration Facilities in Sarawak.
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Total assets strengthened to RM773.3 billion as at Dec 31, 2023, while shareholders’ equity increased to RM443.5 billion as at Dec 31, 2023, primarily due to profit attributable to shareholders, he said.
Tengku Muhammad Taufik said Petronas will continue to uphold prudent financial management and discipline, as the group doubles down on emissions abatement in its core business and pursue cleaner energy solutions.
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“We remain committed to executing our Energy Transition Strategy even as we strive to ensure operational excellence. Delivering on both fronts will be crucial in order to continue growing the value of our integrated business portfolio.”
He said Petronas has developed a clear strategy for the energy transition. This strategy aims to ensure a balanced approach in offering emissions-abated solutions while it lays the foundation for a new energy system.
“Across the Group, we are making progress in meeting our near-term target of capping emissions at 49.5 million tCO2e (tonnes of CO2 equivalent) by 2024 in our domestic operations. As we look ahead, Petronas remains determined to continue improving our delivery as a progressive energy and solutions partner,” he said.
On outlook, he said the global economy entered 2024 on a weak footing following softer-than-expected economic performance towards the end of 2023, leading to cautious spending and investments by businesses and consumers.
“Amid these macroeconomic headwinds, the oil and gas markets face uncertainties due to slower global demand, while supply risks are heightened following increased geopolitical tensions in the Middle East and Europe.”
At the same time, the energy industry is experiencing a shift towards cleaner solutions.
“Notwithstanding these challenges, Petronas remains steadfast in upholding capital discipline by striking the right balance between strengthening its Core Business and capturing opportunities in New Business, including clean energy solutions, while responsibly managing carbon emissions in line with its Energy Transition Strategy,” he added.
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