KUALA LUMPUR: Petroliam Nasional Bhd’s (Petronas) net profit surged 43 per cent to RM14.3 billion in the third quarter (Q3) ended September 30, 2018 on the back of a 19 per cent revenue growth to RM63.9 billion.
The national oil company said the improved profit and revenue were offset by higher product costs and stronger ringgit against the US dollar.
“The group’s revenue for the third quarter was RM63.9 billion, up by 19 per cent from the corresponding period in 2017, mainly driven by higher average realised prices for key products coupled with increased efficiency throughout the group.
“These were partially offset by the effect of the strengthening of the ringgit against the US dollar exchange rate and lower sales volume mainly for LNG,” Petronas said in a statement.
President and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin said the improved results were driven by ongoing operational improvement efforts throughout the group and supported by improved oil prices during the period.
He said Petronas was on track to deliver a strong year-end performance by maintaining its focus on driving efficiency efforts across all 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 in the statement.
For the cumulative period ended September 30, 2018, Petronas recorded a 12 per cent increase in revenue to RM181.1 billion. This was mainly due to the impact of higher average realised prices for key products as well as increased efficiency efforts.
Net profit for the first nine months increased 50 per cent to RM41.0 billion from the same period in 2017.
“The improved performance was primarily due to higher revenue, lower net impairment on assets as well as other expenses,” it said.
Petronas said capital investments for the period was RM26.5 billion, mainly attributed to upstream projects in support of the group’s operational excellence and growth strategies.
Total assets increased to RM623.1 billion as at September 30 this year from RM599.8 billion as at December 31, 2017.
Shareholders’ equity rose to RM402.1 billion compared to RM389.8 billion as at end-December last year. This was mainly contributed by profit generated during the period on the back of ongoing operational improvements and better commodity prices.
As at September 30, Petronas’ gearing ratio remained at 16.1 per cent while return on average capital employed (ROACE) increased to 12.6 per cent from 9.8 per cent as at December 31 last year, in tandem with higher profit.