KUALA LUMPUR, March 2 2018 : Petroliam Nasional Bhd’s (Petronas) net profit for financial year ended Dec 31, 2017 surged by 91.2 per cent to RM45.4 billion compared with RM23.8 billion in 2016.
Its president/chief executive officer, Tan Sri Wan Zulkiflee Wan Ariffin, said revenue increased by 14.6 per cent to RM223.6 billion compared with RM195.1 billion recorded in 2016.
“The strong performance was driven by the group’s ongoing transformation efforts which focused on cost optimisation and efficiency improvements and was also supported by higher commodity prices and improved margins.
“The stronger revenue was due to higher average realised prices recorded for major products coupled with the effect of the weakening of the ringgit against the US dollar,” he told a media briefing on the company’s 2017 financial performance.
He said total assets as at Dec 31, 2017 were slightly lower at RM599.8 billion as compared with RM603.4 billion in 2016, primarily due to the impact of the ringgit strengthening against the US dollar.
Wan Zulkiflee said cash flows from operating activities improved to RM75.7 billion, an increase of 41 per cent from RM53.8 billion in 2016.
“The modest recovery in oil prices, coupled with intensive internal efforts to increase efficiency, have contributed to the group’s strong 2017 performance.
“However, the sustainability of the current oil prices remains to be seen,” he said.
He said Petronas would be building its 2018 budget based on oil price assumption of US$52 (US$1 = RM3.91) per barrel.
For the fourth quarter ended Dec 31, 2017, its net profit rose by 61 per cent to RM18.2 billion from RM11.3 billion in the corresponding quarter last year due to higher revenue and lower net impairment on assets and well costs.
Revenue for the quarter under review rose by 14 per cent to RM61.8 billion, driven by higher average realised prices recorded for major products and higher sales volume mainly from liquefied natural gas and petroleum products. – Bernama