Malaysian oil and gas company Petronas has announced its full-year results for 2018, reporting a profit after tax (PAT) of $13.5bn (RM55.3bn).

This PAT is a 22% increase on 2017’s full-year PAT of RM45.5bn, with Petronas attributing this increase to “higher revenue” and “net write-back of impairment on assets”.

Petronas’ PAT for the fourth quarter (Q4) of 2018 decreased by 21% to RM14.3bn from 2017’s Q4 PAT of RM18.2bn. The company cited “higher production costs, depreciation and amortisation, as well as petroleum proceed” as reasons for this decrease.

Full-year earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 27% to RM116.5bn from 2017’s full-year EBITDA of RM92.0bn.

Petronas’ full-year revenue increased by 12% to RM251.0bn compared to 2017’s full-year revenue of RM223.6bn, with the company citing “higher average realised prices for all key products” as the primary reason for this increase.

Petronas made 10 liquefied natural gas (LNG) deals over 2018, which contributed 58.4m tonnes of LNG per annum to its business portfolio.

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Petronas president and CEO Tan Sri Wan Zulkiflee Wan Ariffin said: “Petronas has recorded a strong financial performance in 2018, supported by our ongoing drive to increase operational efficiency and commercial excellence. We have made progress in the pursuit of our long-term strategies and continue to invest for the future.

“The oil price is expected to remain volatile in 2019, and uncertainty in various fronts will have a significant impact on prices. For the year ahead, we will remain focused on driving high performance, efficiency and operational excellence and continue to deliver value to our stakeholders and ensure Petronas’ long-term sustainability.

“Looking beyond the horizon, many external challenges will require us to remain agile and continue with our efforts to strengthen our organisation.”

Petronas has predicted that the oil and gas industry will “continue to operate in a challenging environment” in 2019 due to “market uncertainties and geopolitical risks,” and expects financial movements in 2019 to be affected by changes in prices.