Page 10 - AsianOil Week 11 2023

AsianOil PERFORMANCE AsianOil

Petronas enjoys profit bump from high

prices, increased sales volumes

MALAYSIA MALAYSIA’S Petronas reported on March 13 a Petronas plans to continue its “prudent
55% climb in profits for the first quarter on the financial management and firm discipline”
The company expects back of higher prices and increased sales vol- that it maintained in the 2018-22 period,
prices to be more umes. However, the state-owned LNG exporter it said. But capital expenditures in 2023-
subdued this year. warned that prices would be more subdued this 27 will rise to MYN300bn in 2023-27 from
year as a result of a forecasted slowdown in the MYN208.5bn in 2018-22. The company
global economy. expects to raise capex funds through partner-
Net income for the company in the first quar- ships with energy investors rather than from
ter amounted to MYR24.4bn ($5.44bn), up from capital markets, it said.
MYN15.7bn a year earlier. Revenue, meanwhile, As much as a fifth of capex, or MYN12-15bn
grew by 38% to MYN105.9bn. Petronas joined annually, will be spent on decarbonisation and
other leading global oil and gas producers in see- energy transition investments, the company
ing a spike in full-year profits for 2022, of 51% to said.
MYN375.3bn. Its profit for the year doubled to In related news, Petronas reported a force
MYN101.6bn. majeure on gas supply to one of its LNG termi-
Petronas and other LNG exporters have capi- nals, Malaysia LNG Dua, in late September. The
talised on a boom in demand for LNG world- incident was the result of a pipeline leak caused
wide over the past year as a result of Russia’s by soil movement. But the company says it will
significant cuts in pipeline gas supply to Europe, still fulfil its contractual supply obligation this
and global supply constraints. year.
Petronas CEO Tengku Muhammad Taufik Petronas has also put on hold the Limbayong
expects a price correction this year, however. deepwater development project off the coast of
“As demand recovery is still fragile, based on Sabah, citing inflationary pressure. But it says
supply challenges, this means volatility,” he told it is looking at other options to see the project
a news conference. through to completion. ™

P10 www. NEWSBASE .com Week 11 17•March•2023