Page 10 - GLNG Week 22 2021

GLNG ASIA GLNG

Petronas has reported a
decline in LNG sales.

Petronas’ profit more than doubles in Q1

PERFORMANCE STATE-OWNED Malaysian major Petronas 100% to MYR6.9bn ($1.67bn) from MYR1.9bn
has recorded a more than 100% year-on-year ($460.4mn) from the same period of 2020.
increase in its first-quarter profit, attributing the Production, meanwhile, contracted by 3% to
result to both a recovery in oil and gas prices as 2.39mn barrels of oil equivalent per day from
well as its own cost-cutting efforts. 2.46 boepd a year earlier.
The company said on May 31 that its profit The company said higher gas volumes from
after tax amounted to MYR9.3bn ($2.25bn) domestic and overseas projects had not been
in the January-March period, compared with able to offset fully liquids production declines at
MYR4.5bn (1.09bn) in the same period of 2020. fields in Malaysia and in Iraq.
It also represented a return to the black after Pet- Petronas brought four fields in Malaysia
ronas posted a MYR1.1bn ($266.5mn) loss in the on stream, reached final investment decisions
final quarter of 2020. (FIDs) on another three – two at home and one
The improved bottom line came despite Pet- in Indonesia – and made two offshore discov-
ronas reporting that its revenue slid 12% y/y to eries in Malaysia and another in Indonesia’s
MYR52.5bn ($12.72bn) in the first three months offshore.
of this year, which was driven by lower sales vol- The state major’s downstream division
ume of oil products, LNG and natural gas, as well returned to the black in the quarter, posting a
as the ringgit’s appreciation against the US dollar. MYR200mn ($46.5mn) profit after recording a
The slide in revenue could not, however, MYR1.2bn ($290.8mn) loss a year earlier. This
fully offset the cost-cutting measures Petronas was despite the fact that its oil product sales con-
had put in place during the course of last year. tracted 19% y/y to 59.4mn barrels in the quarter.
The company said its first-quarter costs shrank Petronas said profits from its gas and new
by 20% y/y to MYR44.9bn ($10.88bn), help- energy division declined by 28% to MYR2.1bn
ing earnings before interest, tax, depreciation ($508.9mn) amid an 11% contraction in LNG
and amortisation (EBITDA) to gain 13% y/y to sales to 8.93mn tonnes and a 19% fall in gas sales.
MYR22.9bn ($5.54bn). While Petronas expects oil and gas demand
Petronas president and CEO Tengku to rise on the back of the global coronavirus
Muhammad Taufik said: “The deliberate steps (COVID-19) vaccination campaign, it warned
taken throughout 2020 have provided the group that recovery prospects “remain uncertain due
with a stronger foundation to better withstand to risk of COVID-19 resurgence”.
volatile market conditions while we contend Taufik: “Even as Petronas navigates the signif-
with the global energy transition.” icant challenges and uncertainties posed by the
While Petronas’ first-quarter oil and gas pro- ongoing COVID-19 pandemic, it will continue
duction decreased marginally, the company said to intensify efforts to achieve its Net Zero Car-
its profit from the segment climbed more than bon Emissions by 2050 aspiration.”™

P10 www. NEWSBASE .com Week 22 04•June•2021