In the face of continued volatility in energy prices, Petronas s financial performance in the first

Mondo Finance Updated on 2024-01-30

KUALA LUMPUR, Dec. 19, 2023 /PRNewswire/ -- Malaysia's overall financial performance declined due to lower energy** as of Sept. 30, 2023. Some of the headwinds were offset by higher volumes of key products.

Financial performance for the first three quarters of fiscal year 2023

compared to the first three quarters of fiscal 2022).

In the first three quarters of fiscal 2023, the group recorded a total revenue of 251.9 billion ringgit (about 382.9 billion yuan). Compared with the same period in 2022, it decreased by 17.5 billion ringgit (about 26.6 billion yuan). The decrease in total revenue was primarily attributable to a decrease in average realisation** of major products as a result of a decline in product benchmarks**, partially offset by higher volumes of major products and favorable foreign exchange factors.

Profit after tax (PAT) decreased by RM13.1 billion (RMB19.9 billion) to RM64.1 billion (RMB42.2 billion), and earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased to RM103.9 billion (RMB157.9 billion).

Cash flow from operating activities (CFFO) was 76 billion ringgit (about 115.5 billion yuan).

The overall capital investment (CAPEX) was 34.3 billion ringgit (about 52.1 billion yuan), mainly due to upstream and natural gas projects. Total domestic capital investment (CAPEX) increased by 37% year-on-year, mainly for investment in the offshore floating LNG project in Sabah and the development of gas fields in Sarawak and the construction of carbon dioxide storage facilities.

As of September 30, 2023, the Group's total assets increased to 752.2 billion ringgit (about 1,143.4 billion yuan), higher than the 710.6 billion ringgit (about 1,080.2 billion yuan) recorded before December 31, 2022.

As of September 30, 2023, shareholders' equity rose to RM432.4 billion (about RMB 657.3 billion), higher than the RM401.6 billion (about RMB 610.5 billion) recorded before December 31, 2022, which was mainly due to the increase in profit attributable to shareholders during the same period and the impact of favorable foreign exchange rates, partially offset by dividends declared to **.

Caption: PETRONAS announced its results for the first three quarters of FY2023).

Third Quarter Fiscal 2023 Financial Performance

compared to the third quarter of 2022).

Total revenue was 82.9 billion ringgit (about 126 billion yuan), compared with 98.9 billion ringgit (about 150.3 billion yuan) in the same period last year, and the main reason for the decline in total revenue was the decline in average realization**, which was partially offset by favorable foreign exchange rate factors.

Profit after tax (PAT) reached 23.9 billion ringgit (about 36.3 billion yuan), and earnings before interest, tax, depreciation and amortization (EBITDA) decreased to 33.3 billion ringgit (about 50.6 billion yuan).

Cash flow from operating activities (CFFO) was 18.1 billion ringgit (about 27.5 billion yuan), in line with the decline in profit in the same period.

Steadfast in the energy transition and continue to invest in the future

Mr. Tan Sri Tawfik, President and Group Chief Executive Officer of Petronas, said:"Despite the volatility faced by the energy market, PETRONAS' performance in the third quarter underscored the results of the company's unwavering energy transition strategy. We continue to rigorously reinvest in our core and new businesses to ensure the security of energy supply for our customers in Malaysia and around the world.

Currently, we are on track to fully leverage 20% of our overall capital investment to decarbonize our operations and grow new businesses. As a national oil company and a growing global energy company, PETRONAS has maintained a steady momentum to deliver long-term sustainable value. In the face of cyclical fluctuations in the energy market, PETRONAS is steadfast in overcoming obstacles and remains committed to providing safe, reliable, responsibly produced, cost-optimised and low-emission energy.

At the same time, PETRONAS will continue to focus on giving back to the countries and regions in which it operates, with a focus on investing in projects that enhance human capital development. Recently, the MRSM Junior Science Colleges in Bintulu and Lanau have been successfully completed. PETRONAS will continue to unwavering in its commitment to enriching lives and shaping a sustainable future. "

Geopolitical tensions, economic instability and global energy security in the Middle East will further exacerbate oil and gas volatility. In this context, PETRONAS expects this year's profit to be lower than last year's. PETRONAS will continue to strengthen the operational optimisation of its core business while reinforcing its sustainability agenda in Malaysia's domestic and international markets.

Commitment to sustainable development and continued contribution to social development

As of Q3 2023, PETRONAS' cumulative greenhouse gas emissions (GHG) from domestic operations in Malaysia were 33.9 million tonnes of carbon dioxide equivalent (miltCO2e), down 0.0 million tonnes from 34.1 million tonnes of CO2e in the same period last year6%。This was mainly due to the company's emission reduction efforts across all business areas, as well as lower upstream production in the third quarter.

As of the third quarter, PETRONAS had completed a total of 39 emission reduction projects, with a focus on improving energy efficiency, reducing flaring and carbon emissions, and electrification.

Under the NZCE 2050 Pathway, PETRONAS plans to limit emissions from its operations in Malaysia to 49.5 million tonnes of carbon dioxide equivalent by 2024, and PETRONAS is well on track to achieve this short-term GHG emissions target.

Caption: PETRONAS is steadily advancing its 2050 net-zero carbon emissions target).

In the third quarter of fiscal year 2023, in terms of social impact, PETRONAS contributed more than 200 million ringgit (about 3.).$100 million), benefiting 840,000 people worldwide, including investment in education under PETRONAS' Education Sponsorship Programme.

As of the third quarter of 2023, PETRONAS has invested nearly 5400 million ringgit (about RMB 8.)200 million yuan), which has positively impacted the lives of more than 1.9 million people. PETRONAS is committed to giving back to Malaysia and other countries and regions where it operates"Improving lives"(Community Well-being and Development),"Knowledge empowerment"(Education),"Sow the future"(Environmental) three pillars of corporate social responsibility.

*All exchange rate conversions above are based on the exchange rate as of December 15, 2023.

1 ringgit = 15201 RMB).

####About PETRONAS

Petroliam Nasional Berhad (abbreviated"Petronas"Founded in 1974, it is a global energy and solutions company ranked among the Fortune Global 500 companies and continues to be listed in the 2023 Global Brand Value 500 report"Top 10 oil and gas brands in the world"and won the title of ASEAN's Most Valuable Brand in 2023. PETRONAS is committed to contributing to the well-being of the communities in which it operates. In 2020, PETRONAS became the first energy company in Southeast Asia to set a net-zero carbon target by 2050, and in November 2022, it announced a net-zero carbon pathway to 2050, accelerating the Group's commitment and actions towards its net-zero vision.

In 2003, PETRONAS Beijing Representative Office was established, after years of development, now set up 7 offices and 3 production bases in Shanghai, Beijing, Guangzhou, Shandong Weifang, Shandong Zibo, Shandong Qingdao, Guangxi Beihai, over the years, PETRONAS has provided China with a stable supply of LNG, petrochemicals, ** oil and lubricants, with high-quality energy solutions to meet the energy needs of the Chinese market.

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