Petronas Profit Doubles by 100% in 2022, Hits More Than $22bn

 Petronas Profit Doubles by 100% in 2022, Hits More Than $22bn

Malaysian Petronas profits witnessed a strong jump in 2022, benefiting from the rise in energy prices in the wake of the Russian invasion of Ukraine.

According to reports, profits doubled 100 percent to $22.59 billion, up from $11.32 billion in 2021. Revenues also increased by 51 percent to reach $83.46 billion, according to Petronas’ 2022 business results, which were seen by EnergyPlanets.

However, the Malaysian state oil company expected oil and gas prices to decline in the current year (2023), due to the expected economic slowdown.

Petronas business results in 2022

Petronas’ cash flows from operating activities increased by 72 percent year-on-year, reaching $30.09 billion, while capital investments amounted to $11.14 billion, along with boosting the company’s total assets to $158.02 billion on December 31, 2022, an increase of 12 percent year on year.

Shareholders’ equity rose to $89.3 billion on December 31, 2022, mainly due to the profits recorded during the year, according to the statement of Petronas’ business results in 2022.

The company also recorded a total average daily production of 2,434 thousand barrels per day of oil equivalent in 2022, higher than 2,275 thousand barrels per day of oil equivalent in 2021.

This is mainly due to improved overall gas demand in Peninsular Malaysia, along with the discoveries made, and better performance in international operations.

Petronas said the group also achieved first hydrocarbon production at 37 sites, final investment decision for 26 projects, and 9 exploration discoveries in Malaysia and abroad.

Petronas profits in the fourth quarter of 2022

In a related context, Malaysian Petronas’ profits recorded a 55 percent jump in the fourth quarter of 2022, thanks to higher energy prices and an increase in sales volume.

The company’s profit was $5.44 billion for the three months ending in December 2022, compared to a profit of $3.49 billion in the same quarter of the previous year (2021). Reuters earlier reported that the oil company’s revenues jumped 38 percent during the fourth quarter of 2022 to $23.55 billion.

Price correction in 2023

For his part, the CEO of Petronas, Tenko Muhammad Tawfiq, said that he expects prices to be corrected in the current year (2023), due to the expected slowdown in the global economy.

He said that the year 2022 enabled the group to benefit positively from the increases in oil and gas, but the last year (2022) also indicated an increase in the volatility of supply and demand, driven by sudden shifts in the market and the rapid transition of energy.

“Since the recovery in demand is still fragile, due to supply challenges, this means volatility,” he said in a press conference.

He added, “Even as we progress relatively steadily, Petronas will continue to enhance its integrated value chain with greater emphasis on commercial and operational excellence.”

According to Petronas’ statement of business results in 2022, the group will continue to practice prudent financial management and strict discipline in reinvestment.

Domestic and international revenues

Petronas Group Chief Financial Officer Lisa Mustafa said that 74 percent of revenues were generated through export and international operations, although the bulk of the revenue generators were in Malaysia.

It added that domestic capital expenditures rose by 24 percent with the achievement of the final investment decision for 16 projects, while the group’s total loans amounted to $23.13 billion.

Lisa said that the oil and gas industry may witness a decline in prices during 2023; Given the expected economic slowdown, even as it grapples with the ongoing market volatility, reports Malay Mail.

“In this environment, the company will continue to drive operational excellence in its core business, while pursuing its goals of growth and sustainability,” she said.

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