Petroliam Nasional Bhd’s (Petronas) net profit for the third quarter ended Sept 30, 2018 rose 43% to RM14.3 billion from RM10 billion a year ago due to higher revenue. The group said in a statement today that the higher revenue was partially offset by higher product costs in tandem with higher prices, coupled with increased depreciation and amortisation.
Earnings before interest, taxation, depreciation and amortisation (ebitda) rose 25% to RM26.9 billion from RM21.5 billion a year ago.
The state-owned oil company attributed the higher earnings to its continuous execution of business improvement activities, focused on increased operational excellence and supported by higher commodity prices.
Revenue for the quarter rose 19% year-on-year to RM63.9 billion, mainly driven by higher average realised prices for key products coupled with increased efficiency throughout the group.
Higher sales were partially offset by the strengthening ringgit and lower sales volume, mainly for liquefied natural gas (LNG). Capital investments for the quarter stood at RM6.7 billion, mainly attributed to upstream projects.
For the nine months ended Sept 30, 2018, Petronas’ net profit rose 50% year on year to RM41 billion, due mainly to higher revenue, lower net impairment on assets as well as other expenses. These were partially offset by higher product costs in tandem with higher prices coupled with increased depreciation and amortisation as well as tax expenses.
Revenue for the period rose 12% year-on-year to RM181.1 billion mainly due to the impact of higher average realised prices for key products as well as increased efficiency efforts, largely offset by the effect of the ringgit strengthening against the US dollar.
Capital investments for the period stood at RM26.5 billion mainly attributed to upstream projects while total assets rose to RM623.1 billion as at end-September, compared with RM599.8 billion as at end-December 2017.
Shareholders’ equity rose to RM402.1 billion as at end-September from RM389.8 billion as at end-December 2017. The gearing ratio remained at 16.1% while return on average capital employed rose to 12.6% from 9.8% during the same period.
The Pengerang Integrated Complex achieved 95% progress as at end-September and successfully received its first crude oil cargo at the Pengerang Deepwater Terminal 2. The project is on track to be ready for startup in 2019.
President and group CEO Tan Sri Wan Zulkiflee Wan Ariffin said Petronas is on track to deliver a strong year-end performance by maintaining focus on driving efficiency efforts across its operations.
“The recent drop in oil prices demonstrate the volatile and cyclical nature of the industry and we will continue to maintain our prudent outlook amidst this landscape while remaining steadfast in pursuing our growth strategies to ensure the long-term sustainability and progress of the company,” he said.