KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) posted a net profit of RM21.3 billion for the first quarter ended March 31 amid prolonged volatility in oil and gas prices.
This was lower than the RM23.8 billion net profit recorded a year ago but higher than the RM16.6 billion in the fourth quarter of 2023.
Group revenue edged up slightly year-on-year to RM89.7 billion from RM89.3 billion previously.
Petronas said in a statement today its earnings before interest, tax, depreciation and amortisation (Ebitda) stood at RM36.2 billion, while cash flows from operating activities fell RM2.1 billion to RM23.4 billion in line with lower profits.
On capital investments (capex), the national oil company said the capex spending amounted to RM10.7 billion during the quarter, primarily attributed to gas and upstream projects.
"This includes the ongoing LNG Canada Project, La Amarga Chica in Argentina as well as the Nearshore Floating LNG Project and Kasawari CO2 Sequestration Facilities in Malaysia. Domestic capex increased by 20 per cent," it added.
Petronas' total assets strengthened to RM796.3 billion as at March 31, 2024.
The group's shareholders' equity declined to RM434.4 billion as at March 31 this year, attributable to dividends declared to shareholders amounting to RM32.0 billion.
Petronas said for the first quarter of 2024, the oil and gas market continued to be affected by the instability of the macroeconomics and geopolitical dynamics amid the energy transition that leads to a prolonged volatile pricing landscape.
"The group will continue to execute all efforts to address the increasing market volatilities, while contending with stakeholders' expectations.
"In line with its energy transition strategy, Petronas is progressing at pace to strengthen its Core Business by continuing towards completion of the Kasawari Gas Field Development in Malaysia and LNG plant in Canada by the end of the year," it said.
Petronas is scaling up its new business with the commissioning of the inaugural interstate transmission system-connected solar project in India.
Petronas president and group chief executive officer Tengku Tan Sri Muhammad Taufik said the group's steady financial performance in the first quarter demonstrates its focused execution of a clear strategy for the energy transition: developing hydrocarbons with measurable and effective decarbonisation initiatives and pursuing cleaner energy solutions.
As the group expects to face increasingly difficult headwinds for the rest of the year, Tengku Muhammad Taufik said Petronas will leverage the strength of its integrated portfolio to reinvest with pace and discipline.
"The group remains steadfast in its approach to generate profitable growth responsibly and sustainably. At all times, Petronas will continue to exercise prudent management of its financial commitments and debt obligations," he added.