PETRONAS’ net profit in the third quarter ending September 30 increased 43% to RM14.3 billion, from the RM10 billion recorded in the same period last year.

Revenue rose 19% to RM63.9 billion from the RM53.68 billion recorded in the corresponding period last year, mainly driven by higher average realised prices for key products, coupled with increased efficiency throughout the group, said the national oil company in a statement today.

It said these were partially offset by the effects of the strengthening ringgit against the US dollar and lower sales volume, mainly for liquefied natural gas.

Capital investments for the quarter stood at RM6.7 billion, mainly attributed to upstream projects, said Petronas.

For the first nine-month period, the group posted a 12% increase in revenue to RM181.1 billion, while net profit jumped 50% to RM41 billion from the same period last year.

“The improved performance was primarily due to higher revenue, lower net impairment on assets, as well as other expenses. These were partially offset by higher product costs in tandem with higher prices, coupled with increased depreciation and amortisation, as well as tax expenses,” said the company.

It said capital investments for the period stood at RM26.5 billion, mainly attributed to upstream projects in support of the group’s operational excellence and growth strategies.

Total assets increased to RM623.1 billion as of September 30, compared with the RM599.8 billion recorded as of December 31 last year.

As of September 30, gearing ratio remained at 16.1%, while return on average capital employed rose to 12.6% from the 9.8% as of December 31 last year, in tandem with higher profit.

Petronas president and group CEO Wan Zulkiflee Wan Ariffin said the company continued to record another strong quarterly performance, further strengthening its financial position.

“The results are driven by ongoing operational improvement efforts throughout the group, and supported by improved oil prices during the period.

“Petronas is on track to deliver a strong year-end performance by maintaining our focus on driving efficiency efforts across all operations.

“The recent drop in oil prices demonstrates the volatile and cyclical nature of the industry, and we will continue to maintain our prudent outlook amid this landscape, while remaining steadfast in pursuing our growth strategies to ensure the long-term sustainability and progress of the company.” – Bernama, November 27, 2018.