Malaysia’s national oil and gas company has reported MYR171.7 billion ($39.4 billion) in revenue for the first six months of 2024, up MYR2.7 billion ($459.5 million) compared to the same period last year despite weaker selling prices especially for liquefied natural gas.Gas drove an increase in Petroliam Nasional Bhd.’s production in January–June 2024 from 2.4 million barrels of oil equivalent a day (MMboed) to 2.5 MMboed.
Despite stronger output, earnings dropped on price volatility. “The prolonged geopolitical tensions and macroeconomic uncertainties remain the key drivers of heightened volatility that continue to negatively impact the global market”, it said in a statement on its website.
Meanwhile Petronas attributed the revenue improvement to foreign exchange impact. However, while revenue increased, profit after tax fell 19 percent year-on-year to MYR 32.4 billion ($7.4 billion) due to “the deconsolidation of subsidiaries and higher taxation”.
On May 21 Petronas said it had completed the sale of its 74 percent stake in Engen Ltd. to Vivo Energy Group. Africa-focused Engen distributes oil, lubricants and chemicals.The divestment drove a decrease in sales volumes from 12.81 billion liters in the first half of 2023 to 12.35 billion liters in the first half of 2024.
On August 7 Petronas also said it was withdrawing its operations in South Sudan. Petronas, through Petronas Carigali Nile Ltd., had at the time a 60 percent stake in Block 5A, 40 percent stake in Block 3 and 7, and 30 percent stake in Blocks 1, 2 and 4. These blocks have 64 producing fields.
Petronas’ EBITDA for the first half of 2024 stood at MYR 64.1 billion ($14.7 billion), down nine percent year-over-year. Petronas logged MYR 54.8 billion ($12.6 billion) in cash flow from operating activities, down five percent year-on-year. Capital investments totaled MYR 25.7 billion ($5.9 billion), mainly driven by upstream development and exploration spending.
Petronas declared MYR 32 billion ($7.4 billion) in dividends for the first six months of 2024.“PETRONAS registered commendable performance in the first half of 2024, amid continued market volatility and global economic slowdown, bearing testimony to our commitment to prudent financial management and the strength of our diverse portfolio”, president and chief executive Muhammad Taufik said in a statement.
“While we expect to see more dynamic shifts in the operating landscape for the rest of the year, PETRONAS is steadfast in pushing on all fronts across our integrated business with a clear strategy and firm capital discipline, anchored on our purpose as a progressive energy and solutions partner to all the societies we serve”, Muhammad added.
Source:https://www.rigzone.com