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Kuala Lumpur, 18 May 2016 – PETRONAS has recorded a group pre-tax profit of RM6.8 billion for the quarter that ended 31 March 2016, 60 per cent lower than the RM17.0 billion posted in the corresponding quarter of 2015.
This was posted on the back of a RM49.1 billion revenue, which is 26 per cent lower compared to RM66.2 billion in the previous corresponding period. Profit after tax and impairments was recorded at RM4.6 billion against RM11.4 billion in the previous corresponding quarter.
The reduced revenue was mainly attributed to the lower product prices following the prolonged downward trend of benchmark Dated Brent and Japan Customs Cleared (JCC) prices, coupled with the lower sales volumes of crude oil and condensates, processed gas and petroleum products.
Lower prices across all products and higher net impairment on assets reduced profitability, which was partially offset by lower product and production costs and the impact of favourable exchange rate against the Ringgit.
Total assets decreased to RM567.6 billion as at 31 March 2016 compared to RM591.9 billion as at 31 December 2015. This was primarily attributable to the impact of a comparatively lower US dollar exchange rate against the Ringgit at 31 March 2016.
Similarly, shareholders’ equity decreased to RM364.7 billion from RM374.9 billion as at 31 December 2015. Gearing ratio decreased to 15.8 per cent as at 31 March 2016, compared to 16.0 per cent as at 31 December 2015. Return on average capital employed (ROACE) was at 3.5 per cent compared to 5.1 per cent as at 31 December 2015.
Cash flows from operating activities decreased by 44 per cent compared to the corresponding quarter last year in line with lower revenue recorded for the quarter, while capital investments totalling RM11.3 billion was mainly attributed to the Refinery and Petrochemical Integrated Development (RAPID) project in Johor and upstream capital expenditure in Malaysia.
Upstream production volume in Malaysia and PETRONAS Group’s international equity production volume rose to 2.45 million barrels of oil equivalent (BOE) per day from 2.39 million BOE per day in 2015 as a result of higher Iraq production entitlement and new production stream from Indonesia, offset by natural decline. Production entitlements to PETRONAS Group was up nine per cent to 1.82 million BOE per day.
Total liquefied natural gas (LNG) sales volume decreased nine per cent to 7.35 million tonnes as compared to the corresponding quarter in 2015 following lower production from PETRONAS LNG Complex in Bintulu, Sarawak.
Meanwhile, limited trading opportunities reduced the sales volume of petroleum products and crude oil by 3.4 million barrels and 3.0 million barrels to 69 million barrels and 55.3 million barrels respectively. Petrochemical products sales volume grew by 0.1 million metric tonnes due to higher production.
Concerns on moderate demand outlook and persistent oversupply will continue to pressure crude oil prices. PETRONAS expects performance to be affected by the volatility of oil prices and foreign exchange rate. PETRONAS will continue with its cost rationalisation efforts to remain competitive while pursuing efforts to drive operational efficiencies and effective delivery of growth projects that bring value.
Group Strategic Communications