Petronas on the uptick with RM16.3 bln PAT

KUCHING: Petroliam Nasional Bhd (Petronas) registered a profit after tax of RM16.3 billion in the third quarter ended Sept 30, 2021 (3QFY21) from a loss after tax of RM3.4 billion in the same period last year, in tandem with higher earnings before interest, taxes, depreciation, and amortisation (EBITDA) and lower net impairment losses on assets.

The national oil firm also recorded revenue of RM61.8 billion, an increase of 50 per cent from RM41.1 billion recorded in the corresponding quarter last year, mainly due to higher average realised prices for major products but was partially offset by lower sales volume mainly from crude oil and condensates.

“Petronas’ third quarter financial performance demonstrates our relentless focus on the group’s operational and commercial excellence.

“We continue to ensure the reliability of our operations to leverage the recovery in global energy demand with the safety of our people and assets as our highest priority,” said president and group chief executive officer Datuk Tengku Muhammad Taufik Tengku Aziz in a statement.

In the third quarter, Petronas’s cash flows from operating activities (CFFO) more than tripled to RM21.8 billion from RM6.3 billion, in line with higher cash operating profit and a positive working capital movement.

For the first nine months of the year, the group recorded a profit after tax of RM35.2 billion, more than a 100 per cent increase from the loss after tax of RM19.9 billion in the corresponding period last year, in tandem with higher EBITDA, coupled with lower net impairment losses on assets.

Revenue for the period increased 27 per cent to RM171.4 billion from RM134.7 billion in the corresponding period last year, mainly due to favourable average realised prices for major products, coupled with higher sales volume for liquefied natural gas (LNG) and sales of gas.

Notwithstanding the Limbayong delay or potential rebidding exercise, AmInvestment Bank Bhd (AmInvestment Bank) remained convinced that oil & gas contract rollouts will gather momentum.

This is particularly expected in selected segments in the value chain better positioned to benefit from projects sanctioned by national oil companies, such as the floating production storage and offloading (FPSO) subsector given the decimated number of operators during the previous downturn in 2015-2017.

“Recall that Yinson was the sole bidder to finally secure the the FPSO charter of the Parque das Beleias field in Brazil that has been cancelled twice over the past year,” it said in its review yesterday.

“Yinson is also hopeful of securing the contract by January next year for an FPSO with potential conversion costs of up to US$500mil to the Atlanta field in the Santos Basin, offshore Brazil after signing a Memorandum of Understanding to exclusively negotiate with Brazil-based Enauta Participacoes S.A.

“Besides bidding for the Pecan charter off Ghana with its purchase option for Woodside’s Nganhurra FPSO, Yinson together with Technip Energies are undertaking pre-front-end engineering and design (FEED) services for Total Energies for two large FPSOs to be deployed in Cameia, Block 20/21, Angola and Maka, Block 58, Suriname.”

AmInvestment Bank maintained its 2021–2022 oil price projection at US$70 to US$75 per barrel as Brent crude oil prices have fallen below US$80 per barrel on resurgent fears that the Covid-19 Omicron variant could dampen global demand.

“As US inventories slid 14 per cent from the year-to-date peak of 502 million barrels on March 26, 2021 to below prepandemic levels at 434 million barrels currently, 2021–2022 price projection is in line with the EIA’s Short-Term Energy Outlook of US$72 per barrel for both 2021 and 2022.

“Notwithstanding rising global vaccination rollouts, we are cautious on the emergence of new viral variants and the possibility of Iranian crude re-entering global markets, rebound in US shale production and further relaxation of OPEC production quotas.”

Petronas’ third quarter financial performance demonstrates our relentless focus on the group’s operational and commercial excellence.

Datuk Tengku Muhammad Taufik Tengku Aziz

Photo — Bernama For the first nine months of the year, Petronas recorded a profit after tax of RM35.2 billion, more than a 100 per cent increase from the loss after tax of RM19.9 billion in the corresponding period last year, in tandem with higher EBITDA, coupled with lower net impairment losses on assets.