KUALA LUMPUR: Petronas returned to the black with a net profit of RM48.6 billion for the financial year ended Dec 31, 2021 (FY2021) compared with a net loss of RM21 billion a year earlier.
The national oil company said the higher earnings recorded for the year was due to better earnings before interest, tax, depreciation, and amortisation (Ebitda) and low impairment losses in FY2021 following an uptrend in oil prices but partially offset by higher taxation.
Petronas recorded a revenue of RM248 billion for FY2021 against RM178.74 billion a year earlier, mainly due to favourable prices for major products in line with higher average realised prices.
President and group CEO Tengku Muhammad Taufik Tengku Aziz said Petronas had remained resilient after two years of extreme disruptions to the energy ecosystem, better positioning the group to capitalise on market recovery.
“With the launch of our new entity in mid-2022 and the setup of our carbon management unit, it is envisaged that Petronas will evolve into an energy ‘superstore’ that will provide customers with a suite of energy and solutions that power businesses and fuel progress in a just and sustainable manner,” he told a media conference to announce Petronas’ fourth-quarter and FY2021 financial results here today.
For FY2021, Petronas said Ebitda rose to RM100.5 billion, primarily attributed to higher revenue, but partially offset by an increase in product costs.
Accordingly, cash flows from operating activities (CFFO) improved to RM78.6 billion.
Total assets increased to RM635 billion as at Dec 31, 2021 compared with RM574.1 billion a year earlier, primarily contributed by higher cash and fund investments and higher receivables.
Capital expenditure for the year was RM30.5 billion, largely from upstream projects.
Shareholders’ equity increased to RM350.9 billion as at Dec 31, 2021 from RM330.6 billion in the preceding year, mainly attributed to profit recorded in FY2021.
Meanwhile, Petronas said it had awarded six of the 13 offshore exploration blocks offered under the Malaysia Bid Round 2021.
The upstream division recorded a total daily production average of 2.28 million barrels of oil equivalent per day in 2021, a 3% increase from 2020, mainly due to higher crude oil production from international operations and higher natural gas production, it said.
Moving forward, Petronas said the group would focus on executing its growth plans and sustainability efforts amidst market uncertainties and heightened geopolitical risks.