Petronas doubles H1’22 net profit

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas), which declared a RM50.0 billion dividend to the government for FY22, saw its net profit for the second quarter ended June 30, 2022 more than double to RM23.0 billion from RM9.6 billion in the same quarter last year in tandem with higher revenue, partially offset by higher product costs and taxation.

The group recorded a 63% higher revenue of RM93.3 billion, compared with RM57.1 billion in the same quarter last year predominantly due to the favourable price impact for all products and favourable impact of the exchange rate.

For the half-year period (H1’22), its net profit more than doubled to RM46.4 billion from RM18.8 billion in the same period last year, in tandem with higher revenue following an upward trend in prices, partially offset by higher product costs and taxation.

Revenue was up 57% to RM172.1 billion compared with RM109.6 billion previously mainly due to favourable price impact for major products aligned with higher benchmark prices.

Capital investments (capex) amounted to RM18.9 billion, mainly contributed by upstream projects. Overall capex spent during the quarter is reflective of the volume of activities returning to pre-pandemic levels.

Petronas has declared another RM25.0 billion dividend to the government, totalling the dividend for FY22 to RM50.0 billion.

Petronas president and group CEO Datuk Tengku Muhammad Taufik said it remains resolute in ensuring that energy continues to be produced and delivered responsibly and sustainably, aligned to its three-pronged growth strategy and aspiration for net zero carbon emissions by 2050.

“Petronas’ efforts are geared to continue strengthening the energy ecosystem at home and wherever we operate. To this end, the group remains committed to creating value that supports Malaysia’s economic growth. This includes supporting the resilience of the local oil and gas ecosystem and cultivating strong partnerships towards sustaining a conducive environment for businesses to thrive,” he said.

On outlook, Petronas said the prolonged geopolitical tensions, energy supply-demand imbalances and the risk of a global slowdown, continue to threaten post-pandemic economic recovery. Petronas remains steadfast in strengthening its core portfolio whilst pursuing its growth strategy and sustainability agenda at pace and resilience.