PETRONAS continues to focus on internal transformation initiatives, effective cash management and cost optimisation.
Strong results are contributed by higher average realized prices, better margins and boosted by the on-going transformation initiatives to reduce cost and increase efficiency.
Datuk Wan Zulkiflee Wan Ariffin, President and Group CEO PETRONAS says, “We have closed out the first half of the year with stronger financials compared to the same period in 2016. While the price of oil was a significant factor, I also view this as tangible results of PETRONAS’ transformation measures taken in response to the industry downturn. And I attribute this to the employees of PETRONAS. They continue to drive impactful changes, which create ripple effects that, as you can see, have positively improved the bottom-line.”
The Group’s revenue grew to RM108.1 billion, up 15 per cent from RM93.7 billion in the first half of 2016, benefitting from the upward trend of key benchmark prices and foreign exchange rate, but was partially offset by lower sales volume.
Profit after tax (PAT) rose more than a 100 per cent to RM17.3 billion from RM6.4 billion in the corresponding period last year, notably due to higher average realized prices as well as lower net impairment on assets and well costs.
The increase however was partially offset by higher amortisation of oil and gas properties, tax expenses, net foreign exchange losses and costs related to the non-Final Investment Decision (FID) for the Pacific NorthWest LNG (PNW LNG) Project in Canada.
Earnings before interest, tax, depreciation and amortisation (EBITDA) was RM45.2 billion, a 35 per cent increase compared to RM33.6 billion recorded during the same period last year.
The Group’s cash flows from operating activities also increased by 55 per cent to RM39.8 billion compared to RM25.6 billion in the same corresponding period in 2016.
Capital investments totalled at RM21.3 billion, mainly attributable to the Refinery and Petrochemical Integrated Development (RAPID) project in Pengerang, Johor.
Total assets decreased to RM596.6 billion as at 30 June 2017 from RM603.4 billion as at 31 December 2016 primarily due to the impact of the strengthening of the Ringgit against the US Dollar.
- For the first half of 2017, Downstream business recorded an increase in PAT attributable to better petrochemical product spreads as well as higher trading and marketing margins.
- Higher volume recorded from petrochemicals was 4.0 MMT for the first half of 2017 compared to 3.5 MMT in the corresponding period last year, following the commissioning of PETRONAS Chemical Fertiliser Sabah Sdn Bhd further supported Petrochemical business in capturing favorable products spreads.
- Healthy trading and marketing margin for Crude and Petroleum products mainly driven by focused trading strategies towards high-value activities.
- PETRONAS’ key downstream project continues to progress well with the Pengerang Integrated Complex (PIC) project achieving 70 per cent completion at 30 June 2017 with seven per cent progress during the second quarter of 2017.
- PETRONAS, through its lubricants business unit, the PETRONAS Lubricants Marketing (Malaysia) Sdn Bhd has successfully secured a four-year Supply Contract Renewal from Mercedes Benz through Cycle and Carriage Bintang Berhad. PWKD29082017