KUALA LUMPUR: Petronas has reported a first quarter profit of RM9.3 billion, recovering from a loss of RM1.1 billion in the fourth quarter of last year.
The first quarter profit was double the RM4.5 billion recorded for the corresponding quarter last year and came from lower group costs, the national oil company said.
However, revenue was lower at RM52.55 billion from RM59.59 billion because of lower sales of petroleum products, liquefied natural gas and natural gas, coupled with the effect of the stronger exchange rate of the ringgit to the US dollar.
However, it said earnings before interest, tax, depreciation and amortisation grew by 13% to RM22.9 billion from RM20.3 billion in the corresponding period.
Cash flows from operating activities stood at RM14.3 billion, a decrease of 19% from RM17.6 billion mainly due to higher inventory as well as lower receipts from customers while total assets increased to RM593.8 billion from RM574.1 billion previously, mainly contributed by higher cash and cash equivalents as well as higher receivables, it said.
“The group’s capital investments amounted to RM6.7 billion, mainly attributed to upstream projects,” it said.
Petronas president and group chief executive Tengku Muhammad Taufik said the company’s first-quarter financial performance reflected its continuing commitment to excellence while preserving a healthy level of liquidity to strengthen its resiliency.
“The deliberate steps taken throughout 2020 have provided the group with a stronger foundation to better withstand volatile market conditions while we contend with the global energy transition.
The company said demand for oil and gas is expected to improve following the global vaccine roll-out programme, but recovery prospects remain uncertain due to risks of Covid-19 resurgence.