International Business & Economy back in the game with strong mid-year results

Petronas back in the game with strong mid-year results

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Despite the heavy beating companies are still suffering from the steep fall in oil prices since 2014, Malaysia’s oil giant said it registered strong earnings for the first half of 2017.
It said the positive earnings were contributed by higher average realised prices, better margins and boosted by the on-going transformation initiatives to reduce cost and increase efficiency.
The Group’s revenue grew to RM108.1 billion, up 15 per cent from RM93.7 billion in the first half of 2016, benefitting from the upward trend of key benchmark prices and foreign exchange rate, but was partially offset by lower sales volume.
Profit after tax (PAT) rose more than a 100 per cent to RM17.3 billion from RM6.4 billion in the corresponding period last year, notably due to higher average realised prices as well as lower net impairment on assets and well costs.
The increase however was partially offset by higher amortisation of properties, tax expenses, net foreign exchange losses and costs related to the non-Final Investment Decision (FID) for the Pacific NorthWest LNG (PNW LNG) Project in Canada.
Earnings before interest, tax, depreciation and amortisation (EBITDA) was RM45.2 billion, a 35 per cent increase compared to RM33.6 billion recorded during the same period last year.
The Group’s cash flows from operating activities also increased by 55 per cent to RM39.8 billion compared to RM25.6 billion in the same corresponding period in 2016.
Capital investments totalled at RM21.3 billion, mainly attributable to the Refinery and Petrochemical Integrated Development (RAPID) project in Pengerang, Johor.
Meanwhile year-to-date crude oil, condensate and natural gas entitlement volume was 1,778 thousand barrels of oil equivalent (BOE) per day while total production volume was 2,342 thousand BOE per day.
Total assets decreased to RM596.6 billion as at 30 June 2017 from RM603.4 billion as at 31 December 2016 primarily due to the impact of the strengthening of the Ringgit against the US Dollar.
Shareholders’ equity of RM375.8 billion decreased by RM4.6 billion mainly due to the approved dividend of RM13.0 billion for the financial year ended 31 December 2016 and the foreign exchange rate impact, partially offset by profit generated during the period.
Gearing ratio decreased to 17.1 per cent as at 30 June 2017 from 17.4 per cent as at 31 December 2016.
Quarter on quarter, PETRONAS’ performance for Q2 of 2017 also improved, largely driven by the upward trend of key benchmark prices and better margins.
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