Petronas persists in FY23, eyes higher capex in 2024
PETROLIAM Nasional Bhd (Petronas) posted a lower net profit of RM80.7 billion in the financial year ended December 31, 2023 (FY23) compared to RM101.6 billion in the preceding year, mainly impacted by lower average realised prices.
Revenue in FY23 slipped to RM343.6 billion compared to RM372.3 billion previously, Petronas president/group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz said.
“The low revenue was mainly due to lower average realised prices for all products in line with declining benchmark prices.
“This is partially offset by improved sales volumes, mainly from petroleum products and foreign exchange impact,” he said at the announcement of Petronas’ financial performance for FY23.
For the fourth quarter of FY23, the national oil company’s net profit decreased to RM16.6 billion from RM24.4 billion, while revenue dropped to RM91.7 billion from RM104.2 billion previously.
Capital Investments amounted to RM52.8 billion in FY23, mainly attributed to upstream and gas projects.
The group’s cash flow from operating activities decreased by RM21.1 billion or 16 per cent in line with lower cash generated from operations, partially negated by higher interest income received.
Tengku Muhammad Taufik said the domestic capital expenditure (capex) increased by 41 per cent against FY22 mainly for open investments in the Petronas nearshore floating liquefied natural gas project in Sabah and the Kasawari Gas Field Development and carbon dioxide (CO2) Sequestration Facilities in Sarawak.
Total assets strengthened to RM773.3 billion as at December 31, 2023, while shareholders’ equity increased to RM443.5 billion as at December 31, 2023, primarily due to profit attributable to shareholders, he said.