“The lower group revenue recorded RM178.7bil against RM240.3bil in the previous financial year was largely due to the effects of plummeting oil prices, ” it said. KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) recorded profit after tax (PAT) of RM10.5bil for FY2020, excluding impairments, which was 78% lower compared to RM48.8bil in FY19 as the global oil industry was impacted by the plunge in oil prices. The national oil corporation said on Friday the PAT was in line with lower revenue realised, partially offset by lower group costs incurred. “The lower group revenue recorded RM178.7bil against RM240.3bil in the previous financial year was largely due to the effects of plummeting oil prices, ” it said. It pointed out this resulted in lower average realised prices for all products, along with demand disruption resulting in lower sales volume from processed gas, petroleum products and LNG. “The downward revision in commodity price outlook is further compounded given the accelerated pace of energy transition. This has resulted in most oil and gas companies, including Petronas taking significant impairment loss provisions on their assets during the year, ” it said. Petronas said in response to the strong headwinds from reduced demand and lower oil prices, it immediately took several decisive and prudent measures. These measures were to ensure the resiliency and sustainability of its operational and financial positions, with increased focus on cost compression, fiscal discipline and higher productivity, it said. Such efforts, Petronas said, have positively cushioned the adverse macroeconomic impact to the group’s financials with lower group costs incurred during the year (excluding impairment) of RM172.7bil compared to RM197.3bil in FY19. “The group has also successfully exceeded the cost targets set in May 2020 which was to reduce operating expenditure (opex) and capital investments (capex) by 12% and 21% respectively. “The cost compression efforts implemented along with continued tight fiscal disciplines adopted have resulted in the delivery of positive cash flows from operating activities (CFFO) of RM40.7bil, albeit 55% lower than the RM90.8bil in the previous year, ” it said. Petronas said this was a commendable performance given the gravity of situation faced and reflects its effective management of its integrated business in generating healthy CFFO which provides comfortable liquidity cover to meet the group’s capital investments of RM33.4bil. In line with the rest of the industry, Petronas registered a RM31.5bil impairment charged on assets during the year, resulting in the group reporting a loss after tax (LAT) of RM21bil as compared to profit after tax (PAT) of RM40.5bil in 2019. “Nevertheless, the group’s earnings before interest, tax, depreciation and amortisation (EBITDA) remained strong at RM55.3bil, ” it said. For the quarter ended Dec 31,2020, the group recorded profit after tax before impairment of RM200mil, as compared to RM9.4bil a year ago. This was primarily due to lower revenue and higher net other expenses. However, this was partly negated by lower tax expenses. Strong CFFO generated of RM8.1bil in 4Q was mainly attributed to the modest demand recovery coupled with improved prices largely from LNG. In the 4Q, FY20, an impairment loss on assets of RM1.3bil was provided for, resulting in loss after tax of RM1.1bil as compared to profit after tax of RM4.1bil a year ago. “The group continued to generate a strong positive earnings before interest, tax, depreciation and amortisation (Ebitda) of RM11.9bil, ” it said.
buyappleacc.com is a professional website selling Apple Developer account for more than 3 years, choose us, provide you with the best Apple Developer account. Don't hassle, just step out.