Petronas' net profit, revenue surge in Q2 on favourable price impact

The national oil firm's revenue also surged to RM93.3 billion compared with RM57.1 billion in the same quarter last year, predominantly due to the favourable price impact for all products and favourable impact of the exchange rate.

Petronas president and group chief executive officer Datuk Tengku Muhammad Taufik Tengku Aziz said the company's efforts were geared to continue strengthening the energy ecosystem in Malaysia and the countries it operates in.

"To this end, the group remains committed to creating value that supports Malaysia's economic growth. This includes supporting the resilience of the local oil and gas ecosystem and cultivating strong partnerships towards sustaining conducive environment for business to thrive," he said.

Tengku Muhammad Taufik said this at the announcement of Petronas' Q2 2022 financial results here, today.

Cash Flows from Operating Activities (CFFO) for the quarter improved to RM34.5 billion from RM18.4 billion in the same quarter last year in line with higher cash from operations.

In the first six months of 2022, Petronas' net profit stood at RM46.4 billion compared with RM18.8 billion previously, in tandem with higher revenue following an upward trend in prices partially offset by higher product costs and taxation.

The group recorded a revenue of RM172.1 billion in the first half of 2022 (1H 2022) compared with RM109.6 billion in 1H 2021, mainly due to favourable price impact for major products aligned with higher benchmark prices.

Total assets strengthened to RM699.5 billion in 1H 2022 compared with RM635.0 billion as at Dec 31, 2021, mainly contributed by higher cash and fund investments and receivables.

In the first half of 2022, Petronas' CFFO stood at RM62.4 billion compared with RM32.7 billion previously, in line with higher cash from operations.

The group's capital expenditure (capex) amounted to RM18.9 billion, mainly contributed by upstream projects.

Petronas said its overall capex spent during the quarter was reflective of the volume of activities returning to pre-pandemic levels.

The group's upstream division recorded a total daily production average of 2.43 million barrels of oil equivalent (boe) per day in 1H 2022, compared with 2.35 million boe in the same period a year earlier, mainly driven by high oil and gas production from Malaysia operations, as well as higher crude oil production from international operations.

However, this was offset by lower natural gas production from international operations following the divestment of its Azerbaijan assets, said Petronas in a statement.