PETALING JAYA: Petroliam Nasional Bhd’s (Petronas) profit after tax (PAT) rose 2% to RM23.8 billion in the first quarter of 2023 (Q1 FY2023) compared with the quarter a year ago on higher interest income and lower taxes.
The group recorded earnings before interest, taxes, depreciation and amortisation (Ebitda) of RM38.6 billion, lower by RM1.8 billion mainly due to higher product costs and operating expenditure partially negated by higher revenue.
Group revenue for the quarter was 16% higher to RM90.4 billion versus the same quarter in 2022, underpinned by improved sales volume and favourable impact from foreign exchange.
“This was partially offset by lower average realised prices from major products,” the national oil corporation said in a statement today.
President and group CEO Tengku Muhammad Taufik Aziz said Petronas would remain cautious while focusing on prudent financial management, strengthening its core business, and expanding its business portfolio.
“We will aim to grow value for our stakeholders and partners, with an unwavering commitment to ensuring the well-being of Malaysians and the communities wherever we operate,” he said.
Meanwhile, Petronas’ capital expenditure (capex) amounted to RM10.5 billion, mainly contributed by upstream and gas projects.
Domestic capex increased by 44% against the same period last year mainly for investments in the Petronas Nearshore Floating Liquified Natural Gas (LNG) project in Sabah and the Kasawari Gas Field Development in Sarawak.
Petronas’ total assets strengthened to RM713.6 billion as at March 31, 2023, compared with RM710.6 billion as at Dec 31, 2022 mainly contributed by higher cash and cash equivalents partially offset by lower receivables.
Cash flows from operating activities decreased by RM2.3 billion in line with lower cash generated from operations and higher taxation paid relating to prior year of assessment partially negated by higher interest income received.
For the upstream division, PAT for Q1 FY2023 was RM12.5 billion, up by RM600 million primarily due to higher revenue partially offset by higher product cost, while revenue was RM35.9 billion, higher by RM1.1 billion when compared to the first quarter of 2022.
“It is mainly contributed by higher crude oil and condensates and natural gas sales volume coupled with favourable impact from foreign exchange. This was partially offset by lower average realised price for crude oil and condensates,” it added.
Total daily production average for the quarter was 2,497,000 barrels of oil equivalent (BOE) per day, higher by 41,000 BOE per day compared to the corresponding quarter last year.
It is mainly due to higher gas production from Malaysia operations, coupled with higher crude oil production from international operations. This was partially offset by lower condensates and natural gas production from international operations.
As for the gas division, PAT was RM8.8 billion in Q1 against RM8.4 billion in the same quarter of 2022 primarily driven by higher revenue and partially offset by higher product costs, while revenue was RM33.2 billion, an increase of RM5.7 billion from the same quarter in 2022.
Malaysia’s average gas sales volume increased by 310 million standard cubic feet per day mainly due to higher offtake from the power sector in Peninsular Malaysia.
Gross LNG sales volume increased by half-a-million tonnes mainly due to higher plant production in line with higher demand.