KUALA LUMPUR – Petroliam Nasional Bhd (Petronas) reported weakened financial performance for last year, revealing a net profit of RM80.7 billion alongside an 8% decline in revenue which stood at RM343.6 billion as of December 31, 2023.
Previously, the national oil and gas company recorded a net profit of RM101.6 billion from a total revenue of RM372.3 billion for FY2022.
Petronas president and group chief executive Tan Sri Tengku Muhammad Taufik said this was due to lower average realised prices for all products in line with declining benchmark prices.
“This is mainly impacted by lower average realised prices.
“This is partially offset by improved sales volumes mainly from petroleum products and foreign exchange impact,” he said while announcing the 2023 financial performance in Petronas Twin Towers today.
As a result, the group’s cash flows from operating activities dropped to RM114.2 billion from the previous record of RM135.3 billion.
However, the total assets hiked to RM773.3 billion from RM710.6 billion, while the capital expenditure (capex) slightly increased from RM50.1 to RM52.8 billion as of December 31, 2023.
The earnings before interest, tax, depreciation, and amortisation for 2023 stood at RM128.6 billion, he said.
Taufik also said that the current global economic slowdown and the geopolitical crisis in the Middle East and Europe pose challenges in the outlook for 2024.
“The global economy enters 2024 on a weak footing following softer than expected economic performance towards the end of 2023, leading to cautious spending and investments by businesses. and consumers.
“Amid these macroeconomic headwinds, the oil and gas markets face uncertainties due to slower global demand, while supply risks are heightened following increased geopolitical tension in the Middle East and Europe,” he said.
Concurrently, there is a trend in the energy sector towards cleaner solutions, he added.
Petronas also paid a RM40 billion dividend payment to the government for FY2023, which was lower than the RM50 billion allocated in 2022.
Its executive vice president and group chief financial officer Liza Mustapha also said the board had approved a dividend payout of RM32 billion for FY2024, adding that it will be paid in April and September this year.
In addition to the dividend, Liza said Petronas has committed to contributing RM2 billion to the National Trust Fund.
She attributed the reduced dividend to challenging market conditions and unfavourable average realised prices throughout the year.
“Petronas continues to exercise strict capital discipline whilst ensuring robust portfolio management, amidst increased market volatility,” she added.
“The group remains steadfast and resolute in delivering energy security in a just and responsible manner, whilst pursuing its growth and sustainability agenda.”
Last year, Petronas president and group chief executive, Taufik said that the initially approved dividend for FY2023 was RM35 billion, while any additional amount to the dividend will be given based on Petronas’ affordability after taking into account the needs for operations, growth objectives, and financial commitments.
However, the company’s board of directors agreed to give a RM50 billion dividend payout to the government for 2022 despite ongoing market volatility. – March 15, 2024
Apart from Taufik and Liza, chief operating officer Adnan Zainal Abidin, executive vice president and upstream CEO Datuk Adif Zulkifli, and executive vice president and downstream CEO Datuk Sazali Hamzah were also present at the event. – March 15, 2024