PETRONAS NET PROFIT JUMPS 26pc TO RM13 BILLION IN Q1
26pc increase to RM13b in Q1
PETROLIAM Nasional Bhd’s (Petronas) net profit jumped 26 per cent to RM13 billion in the first quarter ended March 31, buoyed by higher oil prices.
The strong performance suggested that the national oil company might give out more money in the form of tax and dividends to the government this year.
A finance ministry official said the government might collect RM8 billion to RM9 billion more in revenue from Petronas this year.
Ong Kian Ming, a special officer to the finance minister, said the increase in revenue would come through corporate taxes and dividends, and discussions on the matter were still ongoing.
With rising oil prices, Malaysia was looking to Petronas to contribute more to government coffers this year to help narrow the revenue shortfall from effectively scrapping a consumption tax, Ong told BFM radio station earlier yesterday.
Petronas posted a net profit of RM10.3 billion in the corresponding quarter last year. Besides higher oil prices, it attributed RM13 billion profit to higher revenue and net write-back on impairment.
Petronas’ revenue grew RM1.4 billion to RM57.9 billion, from RM56.5 billion in the first quarter last year, due to higher average realised prices recorded across all products. But this was largely offset by the effect of the strengthening of the ringgit against the US dollar.
President and chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin expects the group’s overall year-end performance to be “satisfactory”.
“Our encouraging performance in the first quarter was attributed to our ongoing transformation efforts, which focus on overall business improvement and operational excellence, coupled with a recovery in commodity prices.
“While oil prices have trended upwards, the industry must continue to be diligent in institutionalising the cost-effective discipline and the drive for efficiencies pursued over the past few years. This will ensure the sustainability of Malaysia’s oil and gas industry in the current competitive global landscape,” he said in a statement yesterday.
Petronas’ earnings before interest, tax, depreciation and amortisation grew two per cent to RM25 billion from RM24.6 billion in the corresponding quarter last year.
Cash flow from operations rose to RM21.9 billion, up 22 per cent, from RM18 billion a year ago.
Its total assets eased to RM592.8 billion as at March 31 from RM599.8 billion as at December 31 last year due to the impact of stronger ringgit against the US dollar.
Its shareholders’ equity of RM390.7 billion as at March 31 was RM900 million higher than the RM389.8 billion recorded at the end of last year.
The group’s capital investment during the quarter was RM12 billion, mainly attributable to the Refinery and Petrochemical Integrated Development project in Johor.