Petronas posts Q3 revenue of Rm41bil

Impairment loss, lower oil price weigh on firm

KUALA LUMPUR: Petronas posted a net loss of Rm3.4bil for the third quarter (Q3) ended Sept 30 compared with a net profit of Rm7.4bil in the same quarter last year, due to lower earnings before interest, taxes, depreciation, and amortisation (EBITDA).

Higher impairment loss on assets and higher tax expenses attributed to de-recognition of deferred tax assets, primarily as a result of lower oil and gas prices outlook also affected its financial performance.

“Excluding impairment loss, the group would have recorded a net profit of Rm2.6bil,” the national oil company said in a statement.

The group recorded a revenue of Rm41.1bil, lower by 25% from Rm55.1bil in the corresponding quarter last year, mainly due to lower average realised prices for major products.

“Having persevered through nine gruelling months, Petronas has recorded slight improvements in quarter three compared to the previous quarter resulting from sporadic easing of lockdowns which has led to gradual resumptions of economic activities worldwide,” its president and group chief executive officer, Tengku Muhammad Taufik Tengku Aziz said.

He said Petronas is adopting a cautious outlook and anticipates that the remainder of 2020 will be challenging amid the fluid operating environment brought about by the pandemic as well as prolonged volatility of oil prices.

“We expect our performance to be continuously affected by the volatility of oil prices aggravated by the ongoing Covid-19 pandemic,” he said.

Despite the challenges, Tengku Muhammad Taufik said Petronas will remain focused in maintaining portfolio resilience, upholding disciplined capital and operational spending as well as preserving liquidity to ensure business sustainability.

For the nine-month period, Petronas recorded a net loss of Rm19.9bil compared to a net profit of Rm36.4bil in the same period last year.

The group’s capital investments for the period amounting to Rm22.5bil, was mainly attributed to upstream projects.

It also generated positive cash flows from operating activities (CFFO) amounting to Rm32.6bil, despite the softer results during the period, a decline of 50% from Rm64.6bil in the corresponding period last year.— Bernama

“Excluding impairment loss, the group would have recorded a net profit of Rm2.6bil.” Petronas