KUALA LUMPUR (March 15): Petroliam Nasional Bhd (Petronas), the country’s state-owned oil and gas (O&G) company, posted RM16.6 billion in net profit for the fourth quarter of 2023 (4QFY2023), down 32% from RM24.4 billion a year earlier, due to lower average realised prices.
Quarterly revenue dropped 12% to RM91.7 billion from RM104.2 billion previously.
For FY2023, Petronas’ net earnings dropped 20.6% to RM80.7 billion from a record high of RM101.6 billion in FY2022, as revenue decreased 7.7% to RM343.6 billion from RM372.3 billion. That said, this is the second best earnings in 20 years.
The oil major paid a RM40 billion dividend to the government in FY2023, lower than the RM50 billion paid in FY2022.
When asked about the dividend payout for FY2024, Petronas executive vice-president and group chief financial officer Liza Mustapha said the board has approved a dividend payment of RM32 billion.
"It [the dividend] will be paid in the month of March to December. The board just approved [it] yesterday," she noted.
The oil major’s capital expenditure stood at RM52.8 billion for FY2023, up from RM50.1 billion a year ago, mainly attributed to upstream and gas projects.
As at end-December 2023, the company’s total assets increased to RM773.3 billion from RM710.6 billion, while shareholders’ equity expanded to RM443.5 billion from RM401.6 billion.
Looking ahead, Petronas president and group chief executive officer Tan Sri Tengku Muhammad Taufik Aziz said the O&G market will face uncertainties due to slower global demand, while supply risks are set to heighten following increased geopolitical tension in the Middle East and Europe.
“Average prices for oil [in 2023] were 20% lower than in 2022. At the same time, the energy industry is experiencing a shift towards cleaner solutions,” he said at a media briefing on Friday in conjunction with the release of Petronas’ 4QFY2023 results.
“Notwithstanding these challenges, Petronas remains steadfast in upholding capital discipline by striking the right balance between strengthening our core business and capturing opportunities in new business, including clean energy solutions, while responsibly managing carbon emissions in with our energy transition strategy,” he added.
Muhammad Taufik said Petronas is focused on expediting monetisation of resources for energy security responsibly while advancing the development of its maiden carbon capture and storage project in Kasawari.
“Additionally, Petronas continues to progress towards commissioning its liquefied natural gas plant in Canada and intensifying value accretive renewables and hydrogen projects,” he added.
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