KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) posted a net profit of RM32.4 billion for the first half ended June 30, 2024, despite market volatility and a global economic slowdown.

This marked a 19 per cent drop from the RM40.2 billion net profit recorded in the same period last year, primarily due to the deconsolidation of subsidiaries and higher taxes.

Nevertheless, group revenue experienced a slight year-on-year increase, reaching RM171.7 billion compared to RM169 billion previously.

Petronas said in a statement today that this is mainly due to the impact from foreign exchange. 

"This was partially offset by lower average realised prices, especially for LNG in tandem with declining benchmark prices," it said. 

For the group earnings before interest, tax, depreciation, and amortisation (EBITDA), Petronas recorded nine per cent lower EBITDA to RM64.1 billion, in line with its lower profits.

Petronas said its cash flows from operating activities (CFFO) stood at RM54.8 billion, a decrease of RM3 billion, or five per cent, in line with lower profits generated during the period.

Meanwhile, the group's capital investments (Capex) amounted to RM25.7 billion, mainly from the development and exploration activities in the upstream business. 

"Domestic Capex increased by 18 per cent against the same period last year," it said. 

In addition, Petronas's total assets increased to RM798.6 billion as of June 30, 2024, against RM773.3 billion as of December 31, 2023, mainly contributed by capital investments during the financial period.

Shareholders' equity increased to RM443.9 billion, mainly attributable to profit recorded during the financial period partially offset by dividends declared to shareholders amounting to RM32.0 billion.

Petronas president and group chief executive officer Tengku Tan Sri Muhammad Taufik said as the group crossed the 50-year mark, Petronas remained unwavering in its duty as a National Oil Company to deliver long-term sustainable value for Malaysia's economic growth.

Since inception, Tengku Muhammad Taufik said Petronas has injected RM1.4 trillion into the nation's economy through dividends, taxes, and cash payments.

"Having evolved into a global energy player in this time, Petronas will continue to strengthen collaboration with forward-looking partners both at home and abroad, accelerating the adoption of technologies and the execution of our Energy Transition Strategy to pave the way for future growth.

"While we expect to see more dynamic shifts in the operating landscape for the rest of the year, Petronas is steadfast in pushing on all fronts across our integrated business with a clear strategy and firm capital discipline, anchored on our purpose as a progressive energy and solutions partner to all the societies we serve," he added.

https://www.nst.com.my/business/corporate/2024/09/1101763/petronas-records-rm324bil-net-profit-first-half-2024