KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) saw its net profit decline 21% in the fourth quarter ended Dec 31, 2018 (Q4 2018) to RM14.3 billion, from RM18.2 billion in the previous corresponding quarter mainly due to higher product costs, depreciation and amortisation as well as petroleum proceeds.
Revenue for the quarter, however, rose 13% to RM69.9 billion, compared with RM61.8 billion in the same period in 2017, primarily attributable to the impact of higher average realised prices for all key products.
However, this was partially offset by the impact of lower sales volume, mainly for liquefied natural gas.
Earnings before interest, taxes, depreciation and amortisation (ebitda) surged 47% to RM37.3 billion, compared with RM25.3 billion in Q4 2017, thanks to higher average realised prices.
Cash flows from operating activities jumped 68% to RM30.1 billion against RM17.9 billion in Q4 2017.
For the full year of 2018, Petronas’ net profit soared 22% to RM55.3 billion, from RM45.5 billion in 2017, on the back of higher revenue and supported by net write-back of impairment on assets.
The group’s revenue increased 12% to RM251 billion, against RM223.6 billion a year ago.
Cash flows from operating activities improved to RM86.3 billion, an increase of 14% from RM75.7 billion in 2017.
Totals assets increased to RM636.3 billion as at Dec 31, 2018, from RM599.8 billion recorded in 2017.
As at 2018, Petronas’ gearing ratio went up to 19.7%, from 16.1% in 2017, arising from additional provision for the decommissioning of assets following the revision of estimated abandonment costs for oil and gas properties, coupled with lower shareholders’ equity.
Capital investments for 2018 stood at RM46.8 billion, mainly attributed to upstream projects in support of the group’s operational excellence and growth strategies.
On its outlook, Petronas expects the oil and gas industry will continue to operate in a challenging environment arising from market uncertainties and geopolitical risks.
The board expects the financial performance for 2019 to be affected by the movements in prices.
