KUALA LUMPUR, 30 August 2022 – PETRONAS has delivered a robust performance for the first half of 2022 amidst continued volatility in the energy market and accelerated energy transition.
The strong performance was mainly attributed to elevated oil and gas prices arising from a widening supply gap and dwindling system capacity. The Group’s performance in the first half of the year further reinforces the need for sustained operational resilience going forward.
In pursuing growth, the Group remained focused on its intent of delivering energy that is secure, accessible and sustainable to Malaysia and customers across the world.
1H FY022 Results
(Analysis against 1H FY2021)
In the first six months ended 30 June 2022, the Group recorded a revenue of RM172.1 billion, compared to RM109.6 billion in the first half of 2021, mainly due to favourable price impact for major products aligned with higher benchmark prices.
Profit After Tax (PAT) stood at RM46.4 billion compared to RM18.8 billion previously, in tandem with higher revenue following an upward trend in prices partially offset by higher product costs and taxation.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) improved to RM82.7 billion compared to RM46.0 billion previously, mainly attributable to higher revenue partially offset by an increase in product costs and other operating expenses.
Cash Flows from Operating Activities (CFFO) stood at RM62.4 billion, compared to RM32.7 billion previously, in line with higher cash from operations.
Total assets strengthened to RM699.5 billion in the first half of 2022 compared to RM635.0 billion as at 31 December 2021, mainly contributed by higher cash and fund investments and receivables.
Shareholders’ equity increased to RM375.6 billion as at 30 June 2022 compared to RM350.8 billion as at 31 December 2021 mainly attributable to profit recorded during the period.
Capital Investments (CAPEX) amounted to RM18.9 billion, mainly contributed by Upstream projects. Overall CAPEX spent during the quarter is reflective of the volume of activities returning to pre-pandemic levels.
Q2 FY022 Results
(Analysis against Q2 FY2021)
For the second quarter ended 30 June 2022, the Group recorded higher revenue of RM93.3 billion, compared to RM57.1 billion in the same quarter last year predominantly due to the favourable price impact for all products and favourable impact of the exchange rate.
PAT increased to RM23.0 billion compared to RM9.6 billion in the same quarter last year in tandem with higher revenue partially offset by higher product costs and taxation.
EBITDA stood at RM43.1 billion, which improved from RM23.2 billion in the same quarter last year in line with higher revenue.
CFFO improved to RM34.5 billion from RM18.4 billion in the same quarter last year in line with higher cash from operations.
Datuk Tengku Muhammad Taufik, President and Group CEO, PETRONAS
“PETRONAS’ strong performance in the first half of 2022 demonstrates our commitment to undertake all necessary measures to remain resilient even as we sustain commercial and operational excellence in all our business operations, in the face of the increasingly volatile global environment.
“Looking ahead, aligned to our three-pronged growth strategy and Net Zero Carbon Emissions by 2050 aspiration, PETRONAS remains resolute in ensuring that energy continues to be produced and delivered responsibly and sustainably.
“Towards this end, PETRONAS’ efforts are geared to continue strengthening the energy ecosystem at home and wherever we operate. To this end, the Group remains committed to creating value that supports Malaysia’s economic growth. This includes supporting the resilience of the local oil and gas ecosystem and cultivating strong partnerships towards sustaining a conducive environment for businesses to thrive.”
“Even as we pursue growth and unlock greater value for our stakeholders, we will remain steadfast in giving back to societies through our wide-reaching Social Impact programmes.”
Social Impact Investment
For the first half of 2022, PETRONAS contributed close to RM300 million towards the Nation’s Sustainability and Community Well-being and Development efforts, benefitting over 500,000 beneficiaries worldwide. The investments aimed to create positive alliances with the communities where the company operates by protecting the environment and adding value to the well-being of employees, partners and communities.
The prolonged geopolitical tensions, energy supply-demand imbalances and the risk of a global slowdown, continue to threaten post-pandemic economic recovery. PETRONAS remains steadfast in strengthening its core portfolio whilst pursuing its growth strategy and sustainability agenda at pace and resilience.
Operational Highlights for 1H FY2022
Maximising Cash Generators
Upstream recorded a total daily production average of 2,425 thousand barrels of oil equivalent (boe) per day for the first half of 2022, higher than the 2,345 thousand boe per day recorded in the first half of 2021. This was mainly driven by high oil and gas production from Malaysia operations, coupled with higher crude oil production from international operations. This was partially offset by lower natural gas production from international operations following the divestment of its Azerbaijan assets.
Upstream achieved the following in the first half of 2022:
18 projects in Malaysia and abroad achieved first hydrocarbon – 15 brownfields and three greenfields.
10 projects achieved final investment decision (FID) – two in Sarawak, one in Sabah, one in the Malaysia-Thailand Joint Development Area (MTJDA), four in Indonesia, one in South Sudan and one in Brazil.
As a reliable and progressive partner, PETRONAS ensures attractive opportunities and safe energy supply Production Sharing Contracts (PSCs):
Advocating Malaysia as a world-class investment destination with the awards of five PSCs for six offshore exploration blocks located off the coast of East Malaysia namely SB412, 2W, X and SK439/440 on 23 March 2022, and Block SK427 on 22 April 2022.
Enhancing Upstream’s portfolio in Indonesia with the signing of the PSC for the North Ketapang block in East Java, Indonesia on 24 June 2022, in which PETRONAS holds 100 per cent equity and operatorship. This is subsequent to it winning the North Ketapang block in the Indonesia Petroleum Bid Round 2021.
PETRONAS’ subsidiaries, PETRONAS Azerbaijan (Shah Deniz) S.à r.l. and PETRONAS South Caucasus S.à r.l., completed the divestment of entire assets in the Republic of Azerbaijan in February 2022. The Sale and Purchase Agreements for these transactions were signed on 10 December 2021.
Low Carbon Excellence
Maximising Cash Generators
Maximising Cash Generators
Expanding Core Business
Cleaner Energy Solutions
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