PETRONAS PROFIT UP BY 91%
PETRONAS - Kuala Lumpur, 2 March 2018 – PETRONAS announced a strong performance for its financial year ended 31 December 2017. The strong performance was driven by the Group's ongoing transformation efforts which focused on cost optimisation and efficiency improvements, and also supported by increased commodity prices and improved margins.
The Group's revenue increased by 15 per cent to RM223.6 billion compared to RM195.1 billion recorded in 2016. The increase was mainly due to higher average realised prices recorded for major products coupled with the effect of weakening of the Ringgit against the US Dollar. This was partially offset by lower sales volume for crude oil & condensate and petroleum products.
PETRONAS' Profit After Tax (PAT) jumped by 91 per cent in 2017 at RM45.5 billion, compared to RM23.8 billion recorded in 2016. The increase was achieved on the back of higher revenue, lower net impairment on assets and well costs and continuous efforts to optimise costs in 2017.
Cumulative 2017 Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose to RM92.0 billion compared to RM70.7 billion recorded in 2016, in line with higher profits.
Cash flows from operating activities improved to RM75.7 billion, an increase of 41 per cent from RM53.8 billion in 2016.
Total assets as at 31 December 2017 was slightly lower at RM599.8 billion as compared to RM603.4 billion as at 31 December 2016 primarily due to the impact of the Ringgit strengthening against the US Dollar.
Shareholders' equity of RM389.8 billion as at 31 December 2017 increased by RM9.4 billion compared to 31 December 2016 mainly due to profit generated during the year.
The Group's gearing ratio remained stable at 16.1 per cent compared to 17.4 per cent recorded last year. ROACE increased to 9.8 per cent compared to 5.4 per cent in 2016, in line with higher profits.
Capital investments for the year ended 31 December 2017 totalled RM44.5 billion, mainly attributable to the Refinery and Petrochemical Integrated Development (RAPID) Project in Johor.
For the fourth quarter ended 31 December 2017, PETRONAS also recorded an improved performance, largely driven by the upward trend of key benchmark prices and better margins.
The Group's revenue rose to RM61.8 billion, 14 per cent higher compared to the corresponding quarter last year. This was contributed by higher average realised prices recorded for major products and higher sales volume mainly from LNG and petroleum products, partially offset by the effect of the Ringgit strengthening against the US Dollar.
PAT increased by 61 per cent to RM18.2 billion from RM11.3 billion in the corresponding quarter last year due to higher revenue and lower net impairment on assets and well costs. As a result, EBITDA was also higher by 15 per cent, at RM25.3 billion compared to RM21.9 billion in the corresponding quarter last year.
The continued drive for higher productivity and operational excellence have placed PETRONAS in a stronger position to execute its long-term growth strategy. Subject to sustainability of price recovery, the Group expects to deliver a satisfactory performance in the next financial year.
Tan Sri Wan Zulkiflee Wan Ariffin, President and Group Chief Executive Officer PETRONAS
"The modest recovery in oil prices coupled with intensive internal efforts to increase efficiency have contributed to PETRONAS' strong 2017 performance.
The sustainability of the current oil prices remains to be seen. The concern here is that costs are increasing due to a perceived recovery. If this trend is left unchecked, the industry as a whole runs the risk of negating the value we have gained from intensive cost-efficiency efforts over the last three years.
It is imperative therefore, that we do not drop the austerity mind-set and continue to ensure we keep costs under control, increase efficiencies, and drive-up value."
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