Petronas Sees Stronger 2017 Outcomes As Earnings Surge In Q3 – Enterprise News
KUALA LUMPUR: Petroliam Nasional Bhd posted a robust set of results for the third quarter ended Sept 30, 2017 and forecasts the group’s overall year-end performance to be higher than last year as oil price recovers and on account of effectivity enchancment.
The national oil company mentioned in a press release issued on Thursday profit after tax (PAT) rose sixty four% to RM10bil from RM6.10bil, underpinned by improved performances of its upstream and downstream companies.
“In gentle of modest restoration in oil worth and the continued drive for effectivity enchancment, Petronas expects the group’s general yr-end efficiency to be higher than final yr. This would be supported by recovering commodity costs, stronger margins in addition to its on-going group-broad transformation initiatives,” it said.
Petronas’ income increased by 14% to RM53.7bil as a consequence of larger common realised costs for major products and influence of foreign change price.
Commenting on the higher earnings, Petronas said it benefited from increased revenue in addition to decrease net impairment on belongings and properly costs. This was partially offset by greater tax expenses, product costs and amortisation of oil and gasoline properties.
Earnings before curiosity, tax, depreciation and amortisation (Ebitda) grew to RM21.5bil from RM15.2bil within the corresponding quarter last 12 months according to greater revenue earlier than tax (PBT).
Petronas’ capital investments for Q3 have been RM12.5bil, primarily because of the Refinery and Petrochemical Integrated Development (Rapid) challenge in Johor.
For the 9 months ended Sept 30, 2017, Petronas Group recorded a 15% enhance in income at RM161.Eight bil, mainly as a result of impact of upper average realised prices and the impression of foreign alternate charge.
Cumulative PAT jumped by 118% to RM27.3bil from RM12.5bil in the earlier corresponding interval, primarily attributable to decrease net impairment on property and effectively prices.
The stronger ringgit versus the US dollar saw total belongings dip to RM600.3bil as at Sept 30, 2017 compared to RM603.4 billion as at Dec 31, 2016 attributable to stronger ringgit in opposition to US sollar.
Shareholders’ equity decreased to RM380.3bil mainly on account of the ultimate dividend of RM13bil to the government declared for the monetary year petroleum refining and cracking ended Dec 31, 2016 and the interim dividend of RM3bil declared for financial 12 months ending Dec 31, 2017, in addition to foreign exchange charge influence partially offset by profit generated through the interval.
Its gearing ratio decreased to 17.3% as at Sept 30, 2017 from 17.Four% finish-Dec 2016. ROACE elevated to eight.6% from 5.Four% in step with increased profit recorded.
Petronas president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin stated: “We remain dedicated to enhancing effectivity throughout our operations, and will proceed to deal with our transformation initiatives which have produced tangible outcomes.
“We intend to enhance our efforts to take advantage of the present restoration in oil prices for Petronas to close the 12 months strongly.”
• The full production quantity for the cumulative period ended 30 September 2017 was 2.30 million barrels equivalent (BOE) per day in comparison with 2.34 million BOE per day in the identical interval final year. Complete manufacturing entitlement decreased to 1.Seventy four million BOE per day from 1.76 million BOE per day in comparison with the identical period last 12 months. This was mainly due to lower Iraq manufacturing entitlement, lower manufacturing in Canada and higher decline fee in JDA and Egypt.
• Nonetheless, an increase in gas manufacturing was recorded from Kebabangan and NC3 fields. Two greenfield tasks were introduced on-stream in the third quarter of 2017 – Kumang F12 and B15, each offshore East Malaysia, contributing to 24 million customary cubic ft per day.
• Liquefied Pure Gas (LNG) sales recorded a 2 per cent improve in volume compared to the same interval last yr mainly attributable to the higher volume from Practice 9, Gladstone LNG and Egyptian LNG coupled with new quantity from Petronas Floating LNG 1.
• In the meantime, steady efforts in money management and cost optimisation, together with re-basing cost in the upstream business, have recorded RM1.9 billion in financial savings for the petroleum refining and cracking cumulative interval ended 30 September 2017 via improved efficiencies and innovation in the worth chain.
• Petronas signed an settlement with PTT World LNG (PTTGL) for PTTGL’s 10 per cent equity participation in Petronas NG 9 Sdn. Bhd, as well as a protracted-time period Sale and purchase Settlement with S-Oil Corporation for the provision of LNG.
• Downstream business recorded a cumulative PAT of RM8.6 billion for the interval ended 30 September 2017. This was mainly pushed by sustained operational performance, decrease operating prices in addition to greater product prices.
• Downstream General Tools Effectiveness (OEE) was ninety four.5 per cent with refineries in Kertih, Malaysia and Durban, South Africa recording ninety nine.4 per cent and ninety nine.9 per cent respectively. Crude and petroleum merchandise continued to capture higher margins which was attributed by targeted trading methods.
• Petrochemicals enterprise sustained its operational performance and recorded plant utilisation at 91 per cent. Sales quantity for the interval ended 30 September 2017 increased by 9 per cent in comparison with final year, primarily contributed by extra volume from the commissioning of Petronas Chemicals Fertiliser Sabah Sdn Bhd (SAMUR Venture) in May 2017.