Petronas Profits from Higher Prices, Output

Malaysian state Petronas reported August 30 a better second quarter this year compared with last year as earnings before tax, interest, depreciation and amortisation rose 32% to ringgit 27.2bn ($6.6bn), from ringgit 20.6bn in the second quarter of 2017. 

Profit after tax was ringgit 13.6bn, which it said was a "marked improvement of 94% compared to ringgit 7.0bn in the second quarter of 2017.

Revenues rose 15% to ringgit 59.2bn on the back of higher average realised prices mainly for petroleum products and crude oil and condensates. This was largely offset by the effect of the strengthening of the ringgit against the US dollar, it said. Output was also up, year on year.

There was lower net impairment on assets and other expenses compared with the second quarter of 2017. These were, however, partially offset by higher tax expenses and increased net product and production costs recorded during the quarter. Cash flow from operating activities fell 10% to ringgit 19.7bn owing to higher working capital and taxes paid which were partially offset by higher average realised prices. 

Total production volume for the first half of 2018, was 2,383 thousand boe per day compared to 2,342 thousand boe per day in the first half of 2017, mainly due to higher liquid production from international assets. 

Total LNG sales volume for the first half of 2018 was 14.48mn metric tons, down by 0.21mn mt compared with the first half of 2017, mainly attributable to lower volume from LNG plants. Meanwhile, Malaysia average sales gas volume was 2.788bn ft³/day, down 43mn ft³/d in 2017, as demand rose.