PETROLIAM Nasional Bhd (Petronas) posted its strongest financial performance with a net profit of RM101.6 billion in the financial year ended December 31, 2022 (FY2022), up 99.6% against RM50.9 billion a year ago, on the back of favourable market conditions last year.

The national oil company recorded an all-time high revenue of RM375.3 billion in FY2022 from RM248 billion year-on-year, a jump of 51.3% mainly due to the favourable price impact for major products aligned with higher benchmark prices.

Its earnings before interest, taxes, depreciation and amortisation increased 70% y-o-y to RM170.7 billion.

Petronas president/group chief executive officer Tengku Muhammad Taufik Tengku Aziz said while 2022 enabled the group to favourably capitalise on oil and gas upsides, the year also signalled heightened supply-demand volatility driven by sudden shifts in the market and an accelerated energy transition.

“Even as we progress with relatively steadier footing, Petronas will continue strengthening its integrated value chain with a sharper focus on commercial and operational excellence,” he said at the Petronas financial performance for FY2022 announcement in Kuala Lumpur today.

Tengku Muhammad Taufik stressed that Petronas would grow organically by capturing opportunities and would do so while upholding capital discipline both in reinvesting and growing its business portfolio.

Petronas’ cash flows from operating activities increased to RM135.3 billion while capital investments stood at RM50.1 billion contributed by upstream and downstream projects.

The company’s total assets strengthened to RM710.6 billion as at December 31, 2022.

Its shareholders’ equity increased to RM401.6 billion as at December 31, 2022, mainly attributable to the profit recorded during the year.

Petronas group chief financial officer Liza Mustapha said while the bulk of the revenue generators was in Malaysia, 74% of the revenue was realised through export and international operations.

She said domestic capital investments increased by 24% with achieved final investment decision for 16 projects, while the group’s total borrowings stood at RM104 billion. – Bernama, March 13, 2023.