Petronas' Q3 earnings jump 64% on higher revenue, lower costs and impairment on assets

PETALING JAYA: Petroliam Nasional Bhd (Petronas) saw a 64% jump in net profit for the third quarter ended Sept 30, 2017 to RM10 billion from RM6.1 billion a year ago, on the back of higher revenue and lower costs and impairment on assets.

This is despite being partially offset by higher tax expenses, product costs and amortisation of oil and gas properties.

Revenue for the quarter under review rose 14% to RM53.70 billion from RM47.01 billion in the same quarter last year, driven by higher average realised prices for major products and impact of foreign exchange rate.

The national oil company said it expects its overall year-end performance to be better than last year, in light of the modest recovery in oil price and continued drive for efficiency improvement.

“We remain committed to improving efficiency across our operations, and will continue to focus on our transformation initiatives which have produced tangible results. We intend to enhance our efforts to take advantage of the current recovery in oil prices for Peteronas to close the year strongly,” Petronas president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin said in a statement today.

Brent crude oil averaged at US$52.08 per barrel in the quarter under review, compared with US$45.85 in the preceding year’s corresponding quarter.

Its net profit for the first nine months of the year more than doubled to RM27.31 billion against the RM12.50 billion recorded last year primarily due to higher revenue and lower costs and impairment on assets.

Revenue for the period rose 15% to RM161.84 billion from RM140.71 billion a year ago on the back of higher average realised prices recorded across all products following the increase in key benchmark prices (Dated Brent and Japan Customs Cleared) coupled with the effect of the weakening ringgit against the greenback.

This was partially offset by the impact of lower sales volume for crude oil and condensate and petroleum products.