Petronas executive vice-president and group CFO Liza Mustapha said the lower net profit in H1 2024 was due to the deconsolidation of subsidiaries and higher taxation during the period.
However, the national oil company’s revenue increased 1.6% to RM171.7 billion in H1 2024 compared to RM169 billion in the previous corresponding period.
Liza said that the increase in revenue was contributed by the impact of foreign exchange gains.
“This was partially offset by lower average realised prices, especially for liquefied natural gas (LNG), in tandem with declining benchmark prices,” she said during Petronas’s financial results announcement today.
Besides that, Petronas’s cash flows from operating activities stood at RM54.8 billion, a decrease of RM3 billion or 5%, in line with lower profit generated during the period.
The group’s capital expenditure (capex) amounted to RM25.7 billion, mainly from the development and exploration activities in the upstream business, with higher domestic capex increased by 18% against the same period last year.
Total assets of the group increased to RM798.6 billion as at June 30, 2024, against RM773.3 billion as at Dec 31, 2023, mainly contributed by higher capex during the financial period under review.
Shareholders’ equity rose to RM443.9 billion, mainly attributable to profit recorded during the financial period, partially offset by dividends declared to shareholders amounting to RM32 billion.
Commenting on the performance in H1 2024, Petronas president and group CEO Tengku Taufik Aziz said the group has registered commendable results amid continued market volatility and global economic slowdown.
“As we cross the 50-year mark, Petronas has injected RM1.4 trillion into the nation’s economy through dividends, taxes and cash payments.
“Having evolved into a global energy player in this time, Petronas would continue to strengthen collaboration with forward-looking partners both at home and abroad, accelerating the adoption of technologies and the execution of our Energy Transition Strategy to pave the way for future growth,” he said.
On the outlook, Tengku Taufik expected the oil price to be range-bound between US$70 (RM303.61) to US$80 (RM346.99) per barrel in the near-term despite factors such as geopolitical instability and conflicts in the Middle East.