Malaysian state energy company Petroliam Nasional (Petronas) has reported a 32% drop in profit after tax for the financial year 2024 (FY24) to RM55.1bn from RM80.7bn in 2023.
The company attributed the decline to global volatility and declining oil prices.
The negative effect of the foreign currency translation reserve, following the sale of its 74% stake in Engen Group to Vivo Energy, also affected the profit after tax.
The company’s revenue in 2024 was RM320bn, a 7% decline from RM343.6bn in 2023.
Despite the challenges, Petronas increased its capital investments to RM54.2bn in 2024 from RM52.8bn in 2023, with the majority allocated to domestic activities.
The Group recorded lower earnings before interest, taxes, depreciation and amortisation (EBITDA) of RM114.1bn, in line with the reduced profits.
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By GlobalDataPetronas president and Group CEO Tan Sri Tengku Muhammad Taufik said: “PETRONAS’ financial performance in 2024 remained resilient against a backdrop of continued volatility in the markets and mounting regulatory pressures caused by global geopolitical shifts. The steady results were delivered on the back of the Group’s steadfast commitment to prudent financial management and portfolio diversification.
“As the industry contends with evolving market dynamics that will extend beyond 2025, PETRONAS has set in motion a transformation strategy to strengthen its ability to deliver value to our shareholders and stakeholders, energy to our customers and positive impact to the communities we serve.”
Petronas is actively working to “future-proof” its portfolio through strategic investments.
The company is involved in a liquefied natural gas plant joint venture in Canada and upstream ventures in Angola and Indonesia.
Additionally, the group is investing in lower-carbon projects and a specialty chemicals plants as part of its energy transition strategy.
“Through firm discipline in capital allocation and cost rationalisation, strengthened collaborations and new partnership models, as well as operational and commercial excellence, PETRONAS will become more value-centric, globally competitive and agile in responding to market changes,” Taufik added.
