KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) net profit jumped by 91 per cent to RM45.5 billion for the financial year ended 31st December 2017 (FY17), against RM23.8 billion posted in 2016.
This increase was attributed to higher revenue of RM223 billion, a jump of 15 per cent from 2016, lower net impairment on assets and well costs, as well as continuous efforts to optimise cost last year.
Total assets for FY17 was however slightly lower at RM599.8 billion, in comparison to RM603.4 billion in 2016, due to the impact of the ringgit strengthening against the dollar.
“The modest recovery in oil prices coupled with intensive internal efforts to increase efficiency have contributed to Petronas’ strong 2017 performance,” said president and group chief executive officer, Tan Sri Wan Zulkiflee Wan Ariffin at the result announcement this morning.
“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.”
Capital investments last year totalled at RM44.5 billion, mainly on the back of the Refinery and Petrochemical Integrated Development (RAPID) Project in Johor.
The group's gearing ratio remained stable at 16.1 per cent in comparison to 17.4 per cent recorded last year.