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Petronas records higher Q1 profit

Written by  Sunday, 04 June 2017 21:11
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Petronas ended Q1 2017 recording an increase in profit after tax of more than 100%, thanks to higher oil prices and improved margins from its upstream and downstream business units.

Profit for the March quarter amounted to RM10.3 billion compared to RM4.6 billion in the same period last year.

Revenue grew by 25% to RM61.6 billion from RM49.1 billion recorded in Q1 2016.  

Internal efforts to reduce cost and improve efficiency, Petronas said, continued to allow the group to reduce controllable operating expenditure from RM11.4 billion to RM11.1 billion.

Capital investments in Q1 totaled RM11.9 billion, mainly attributable to the Refinery and Petrochemical Integrated Development project in Johor.

Despite the positive results, the Malaysian oil major continues to maintain a conservative outlook for the remainder of 2017.

President and group CEO Datuk Wan Zulkiflee Wan Ariffin said strong performance in Q1 was driven largely by transformation initiatives which continue to gain traction.

“This has strengthened internal collaborations across our upstream and downstream businesses, resulting in improved plant utilization rates, production and the overall creation of substantial value,” he said.

Oil production for the quarter, however, reduced to 2.4 MMboe/d from 2.5 MMboe/d in Q1 2016, owing to lower output in Iraq, lower demand in Turkmenistan and declining production in the Malaysian-Thai Joint Development Area, and Egypt.

Petronas’ liquefied natural gas (LNG) sales volume for the quarter was marginally higher by 0.15 million tonnes as compared to Q1 2016 mainly attributable to higher volume from the Gladstone LNG (GLNG) project in Queensland, and Train 9 in Bintulu.

The firm also commissioned its Terengganu Gas Terminal four months ahead of schedule which is expected to boost the development of Malaysia’s offshore gas fields with high carbon dioxide (CO2) content.

Last year, Petronas’ profit grew by 12% to RM23.5 billion from RM20.9 billion recorded in 2015, due to lower operating expenditures and tax expenses partially offset by lower average prices.

The group’s revenue for 2016 dipped by 17% to RM204.9 billion from RM247.7 billion in 2015.

Image: Petronas

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