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Petronas' profit slips 32 pct to RM55.1 bln in FY2024 due to unfavourable prices

Bernama

25/02/2025

Petronas President and Group CEO Tan Sri Tengku Muhammad Taufik speaks at the Petronas Financial Results Announcement at the Petronas Twin Towers today. - BERNAMA


KUALA LUMPUR: Petroliam Nasional Bhd's (Petronas) net profit fell by 32 per cent to RM55.1 billion in financial year 2024 ended Dec 31, 2024 (FY2024) from RM80.7 billion in FY2023, in line with the lower average realised prices and favourable tax adjustments in 2023.

In a statement, the company said its profit was also impacted by the unfavourable realisation of the foreign currency translation reserve, following the divestment of Engen Group.

Revenue in FY2024 slid by 7.0 per cent to RM320 billion from RM343.6 billion from the previous year due to lower average realised prices, although this was negated by higher sales volume.

"Additionally, the 2024 revenue only included five months of Engen Group's financial results until its divestment in May 2024," the national oil company said.

Capital investments (CAPEX) stood at RM54.2 billion in FY2024, primarily driven by activities in Malaysia, while total assets stood at RM766.7 billion and shareholders' equity rose to RM451.2 billion, mainly due to profit recorded during the year.

In the second half (2H) of FY2024, the oil giant's net profit declined by 44 per cent to RM22.7 billion versus RM40.5 billion in 2H FY2023, in line with lower average realised prices and favourable tax adjustments in FY2023, mainly due to the recognition of deferred tax assets.

Revenue also slipped to RM146.4 billion (2H FY2023: RM174.6 billion) in line with the lower average realised prices largely from petroleum products, and the divestment of Engen Group.

Financial performance remains resilient despite volatility, regulatory pressure

Petronas president/group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz said Petronas' financial performance in 2024 remained resilient against a backdrop of continued market volatility and mounting regulatory pressures caused by global geopolitical shifts.

He said the steady results were delivered on the back of the group's steadfast commitment to prudent financial management and portfolio diversification.

As the industry contends with evolving market dynamics that will extend beyond 2025, Petronas has set in motion a transformation strategy to strengthen its ability to deliver value to its shareholders and stakeholders, energy to customers, and a positive impact on the communities it serves, said Tengku Muhammad Taufik.

"Through firm discipline in capital allocation and cost rationalisation, strengthened collaborations and new partnership models, as well as operational and commercial excellence, Petronas will become more value-centric, globally competitive, and agile in responding to market changes.

"As the national oil company, Petronas continues to be committed in supporting Malaysia's economic growth and energy security. It is envisaged that this transformation will better position this institution to continue upholding the mandate entrusted to it under the Petroleum Development Act 1974," he added.

Outlook

Tengku Muhammad Taufik noted that the energy industry's dynamics in 2024 were shaped by geopolitical instability, evolving policies and regulations, and economic uncertainties, significantly impacting oil and gas prices.

"As we look ahead to 2025, Petronas is strategically positioned to meet rising energy demands while ensuring supply security.

"The group is set to navigate the challenges by maximising the potential of its assets, prudent financial management as well as productivity and efficiency improvements in the group's endeavour to remain a high-performing organisation," he said.

He emphasised that Petronas is dedicated to supporting the nation's energy security and economic growth, as demonstrated by the progress of the Kasawari Gas Field Development and Petronas Floating LNG 3, and the completion of Integrated Bekok Oil projects.

"Internationally, Petronas is committed to future-proofing its portfolio through strategic investments in the ongoing development of LNG plant in Canada and Upstream ventures in Angola and Indonesia.

"Additionally, the group has invested in lower carbon projects and specialty chemicals plants, in pursuing its Energy Transition Strategy," he added.

-- BERNAMA