Driven by the Group’s ongoing transformation efforts which focused on cost optimization and efficiency improvements, PETRONAS has posted strong profits for its financial year which ended on 31 December 2017.
There was a 15% increase from RM195.1 billion in 2016 to RM223.6 billion, with the increase attributed mainly to higher average realized prices recorded for major products coupled with the effect of weakening of the Ringgit against the US Dollar.
Profit After Tax (PAT) increased to RM45.5 billion in 2017 compared to RM23.8 billion recorded in 2016 higher revenue, lower net impairment on assets and well costs and continuous efforts to optimize costs in 2017 are the factors which contributed to the increase.
In comparison to RM70.7 billion recorded in 2016, Cumulative 2017 Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose to RM92.0 billion, consistent with higher profits.
Cash flows from operating activities increased to RM75.7 billion, a 41 per cent increase from RM53.8 billion in 2016.
As at 31 December 2017, total assets stood lower at RM599.8 billion as compared to RM603.4 billion as at 31 December 2016 primarily due to the impact of the Ringgit strengthening against the US Dollar.
For the year ended 31 December 2017, Capital investments totaled RM44.5 billion, mainly attributable to the Refinery and Petrochemical Integrated Development (RAPID) Project in Johor.
PETRONAS also recorded an improved performance, largely driven by the upward trend of key benchmark prices and better margins, for the fourth quarter ended 31 December 2017.
There was a 14 per cent increase in the Group’s revenue which rose to RM61.8 billion, in comparison to the corresponding quarter last year, which contributed by higher average realized prices recorded for major products and higher sales volume mainly from LNG and fuel products, partially offset by the effect of the Ringgit strengthening against the US Dollar.
PETRONAS has been placed in a stronger position to execute its long-term growth strategy, as a result of its continued drive for higher productivity and operational excellence. The Group expects to deliver a satisfactory performance in the next financial year, subject to sustainability of price recovery.
- Downstream business recorded the overall Profit after Tax of RM11.3 billion, 36 per cent higher compared to 2016 (RM8.3 billion). This was driven by strong operational performance to capture the higher spread on petrochemical products as well as higher refining and trading margins.
- Downstream Overall Equipment Effectiveness (OEE) was 94.9 per cent with domestic refineries and Durban, South Africa recording 92.1 per cent and 99.7 per cent respectively. Refining and Trading continued to capture higher margins which was attributed by positive price movement and high-value trading activities.
- Petrochemicals business sustained its operational performance and recorded Plant Utilization at 91.0 per cent; well above world-class benchmark despite heavy statutory turnaround activities undertaken at selected facilities. Correspondingly, petrochemical sales volume for the year was recorded at 8.1 million metric tonnes, higher than preceding year’s 7.3 million metric tonnes.
- Meanwhile, PETRONAS’ retail business also recorded the highest unit margin in five years, supported by retail growth initiatives which have successfully delivered higher fuel volume and convenience store income. Lubricants volume recorded a modest growth in selected countries, coupled with higher demand for base oil.
- PETRONAS has also made steadfast progress with its growth projects. PETRONAS Chemicals Fertiliser Sabah Sdn Bhd (SAMUR) began its commercial operations in May 2017, while the Highly Reactive Polyisobutene (HR-PIB) plant in Gebeng, Pahang has been commissioned in December 2017 and has already distributed on-spec products beginning January 2018.
- At the end of February 2018, the Pengerang Integrated Complex (PIC) has achieved more than 87 per cent progress and remains on track to achieve Ready for Start-Up (RFSU) status in 2019. PWKD08032018