Petronas Declines in Profit for 1Q 2024 Results, Amid Higher Operating Costs, Lower realized Prices

Petronas Declines in Profit for 1Q 2024 Results, Amid Higher Operating Costs, Lower realized Prices

Petronas has reported its financial results for the first quarter of 2024 (1Q of 2024), revealing a slight increase in revenue amounting to RM89.7 billion from 89.3 in 1Q of 2023.

Profit After Tax (PAT) stood at RM21.3 billion from 23.8 billion in 1Q of 2023, while Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at RM36.2 billion from 38.6 billion in 1Q of 2023, due to higher operating costs and lower realized prices across its businesses..

The company’s Cash Flows from Operating Activities (CFFO) decreased by RM2.1 billion to RM23.4 billion in line with lower profits.

Moreover, the Capital Investments (CAPEX) spending amounted to RM10.7 billion primarily attributed to Gas and Upstream projects, including the ongoing LNG Canada Project, La Amarga Chica in Argentina as well as the Nearshore Floating LNG Project and Kasawari CO2 Sequestration Facilities in Malaysia. Domestic CAPEX investment increased by 20 per cent.

Total assets increased to RM796.3 billion as of 31 March 2024, and shareholders’ equity decreased by RM9.0 billion, mainly due to dividends declared to shareholders.

“For the first quarter of 2024, the oil and gas market continued to be affected by the instability of the macroeconomics and geopolitical dynamics amid the energy transition that leads to a prolonged volatile pricing landscape,” the energy firm said in a statement.

In respects of the company’s Upstream segment, it reported a revenue of RM38.1 billion for the first quarter of 2024, a 7% increase compared to the first quarter of 2023, mainly due to the impact from foreign exchange.

The Downstream segment’s revenue, meanwhile, was lower by 7% at RM44.7 billion, due to lower average realized prices for petroleum and petrochemical products, coupled with lower sales volume from petroleum products, partially offset by the impact from foreign exchange.

Moreover, the Gas segment revenue decreased by 3% to RM31.5 billion, primarily due to lower average realized prices of liquefied natural gas and processed gas, partially offset by higher sales volume and impact from foreign exchange.

“Petronas’ steady financial performance in the first quarter demonstrates our focused execution of a clear strategy for the energy transition: developing hydrocarbons with measurable and effective decarbonization initiatives and pursuing cleaner energy solutions,” said Petronas President and Group CEO, Tan Sri Tengku Muhammad Taufik.

In line with its Energy Transition Strategy, Petronas is progressing at pace to strengthen its Core Business by continuing towards completion of the Kasawari Gas Field Development in Malaysia and LNG plant in Canada by the end of the year. In addition, Petronas is scaling up its New Business with the commissioning of the inaugural interstate transmission system-connected solar project in India.

Furthermore, Petronas has completed the acquisition of a 30% equity interest in AM Green Ammonia B.V. to jointly develop green ammonia projects.


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Doaa Ashraf 458 Posts

Doaa is a staff writer with a Bachelor's Degree in Mass Communication, majoring Journalism from Ahram Canadian University. She has 2-3 years of experience in copywriting, and content creation.


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