PETRONAS POSTS HIGHER Q3 FY2018 EARNINGS
KUALA LUMPUR, 27 November 2018 – PETRONAS posted higher earnings for the third quarter ended 30 September 2018, attributed to the Group’s continuous execution of business improvement activities, focused on increased operational excellence and supported by higher commodity prices.
The Group’s revenue for the third quarter of 2018 was RM63.9 billion, up by 19 per cent from the corresponding period in 2017, mainly driven by higher average realised prices for key products coupled with increased efficiency throughout the Group. These were partially offset by the effect of the strengthening of the Ringgit against the US Dollar exchange rate and lower sales volume mainly for LNG.
Profit After Tax (PAT) increased by 43 per cent to RM14.3 billion from RM10.0 billion in the corresponding quarter last year, primarily due to higher revenue. This was partially offset by higher product costs in tandem with higher prices, coupled with increased depreciation and amortisation.
Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) registered a 25 per cent growth to RM26.9 billion, from RM21.5 billion in the third quarter of 2017.
Capital investments for the quarter was RM6.7 billion, mainly attributed to Upstream projects.
For the cumulative period ended 30 September 2018, PETRONAS Group recorded a 12 per cent increase in revenue at RM181.1 billion, mainly due to the impact of higher average realised prices for key products as well as increased efficiency efforts, largely offset by the effect of the strengthening of the Ringgit against the US Dollar exchange rate.
PAT for the first nine months of 2018 increased by 50 per cent to RM41.0 billion from the same period in 2017. The improved performance was primarily due to higher revenue, lower net impairment on assets as well as other expenses. These were partially offset by higher product costs in tandem with higher prices coupled with increased depreciation and amortisation as well as tax expenses.
Capital investments for the period was RM26.5 billion, mainly attributed to Upstream projects in support of the Group’s operational excellence and growth strategies.
Total assets increased to RM623.1 billion as at 30 September 2018, compared to RM599.8 billion as at 31 December 2017.
Shareholders’ equity rose to RM402.1 billion as at 30 September 2018, compared to RM389.8 billion as at 31 December 2017, mainly contributed by profit generated during the period on the back of ongoing operational improvements and better commodity prices.
As at 30 September 2018, gearing ratio remained at 16.1 per cent while Return on Average Capital Employed (ROACE) increased to 12.6 per cent from 9.8 per cent as at 31 December 2017, in tandem with higher profit.
The Board expects that the Group’s performance to show an improvement compared to the previous financial year. Even as the Group contends with more volatile prices, continuous efforts will be pursued to deliver operational excellence.
Tan Sri Wan Zulkiflee Wan Ariffin, President and Group CEO PETRONAS
“PETRONAS continues to record another strong quarterly performance, which has further strengthened our financial position. The improved results are driven by ongoing operational improvement efforts throughout the group and supported by improved oil prices during the period.
PETRONAS is on track to deliver a strong year-end performance by maintaining our focus on driving efficiency efforts across all our operations. The recent drop in oil prices demonstrate the volatile and cyclical nature of the industry and we will continue to maintain our prudent outlook amidst this landscape while remaining steadfast in pursuing our growth strategies to ensure the long-term sustainability and progress of the company.”
Group Strategic Communications