KUALA LUMPUR: Petroliam Nasional Bhd's (Petronas) net profit moderated to RM80.7 billion for the year ended Dec 31, 2023 (FY23) from RM101.6 billion in FY22.
Group revenue came in at RM343.6 billion in FY23, down 7.7 per cent versus RM372.3 billion in the previous year.
The national oil company said the performance was mainly impacted by lower average realised prices for all products in line with declining benchmark prices.
This was partially offset by improved sales volumes mainly from petroleum products and foreign exchange impact.
The group's cash flows from operating activities stood at RM114.2 billion.
Its total assets strengthened to RM773.3 billion as at Dec 31, 2023 from RM710.6 billion in FY22
Petronas' capital investments (capex) amounted to RM52.8 billion, up 5.4 per cent from 50.1 billion in FY22, mainly attributed to upstream and gas projects.
Of the total capex, 51 per cent was for upstream segment and 18 per cent was allocated for gas segment.
The remaining 12 per cent, 11 per cent and eight per cent were earmarked for Gentari, downstream segment and shipping and properties.
Its domestic capex rose 41 per cent against FY22 mainly for investments in the Petronas nearshore floating LNG project in Sabah and the Kasawari
gas field development and CO2 sequestration facilities in Sarawak.
The group's shareholders' equity increased to RM443.5 billion for FY23 primarily due to profit attributable to shareholders.
For the fourth quarter ended Dec 31, 2023 (Q4 2023), the group's net profit dropped 32 per cent year-on-year (YoY) to RM16.6 billion from RM24.4 billion in the same quarter the previous year.
It logged a revenue of RM91.7 billion in the quarter under review versus RM104.2 billion in Q4 2022.
President and group chief executive officer Tengku Tan Sri Muhammad Taufik said the company was able to deliver resilient performance amid a volatile operating environment.
"As we move forward, the group will continue to uphold prudent financial management and discipline, as we double down on emissions abatement in our core business and pursue cleaner energy solutions.
"We remain committed to executing our energy transition strategy even as we strive to ensure operational excellence," he said in a media briefing today.
He added that the group's transition strategy aims to ensure a balanced approach in offering emissions-abated solutions while we lay the foundation for a new energy system.
Across the group, he said Petronas is making progress in meeting its near-term target of capping emissions at 49.5 million tCO2e by 2024 in domestic operations.
Moving forward, the group noted the global economy entered 2024 on a weak footing following softer than expected economic performance towards the end of 2023.
This led to cautious spending and investments by businesses and consumers.
Amid these macroeconomic headwinds, the oil and gas markets face uncertainties due to slower global demand, while supply risks are heightened following increased geopolitical tension in the Middle East and Europe.
At the same time, the energy industry is experiencing a shift towards cleaner solutions.
"Notwithstanding these challenges, Petronas remains steadfast in upholding capital discipline by striking the right balance between strengthening our core business and capturing opportunities in new business, including clean energy solutions, while responsibly managing carbon emissions in line with our energy transition strategy," Petronas said.
