KUALA LUMPUR: Petroliam Nasional Bhd posted a net loss of RM3.4 billion for the third quarter ended September 30, 2020, reversing the RM7.4 billion net profit in the same quarter in 2019.
This is due to lower earnings before interest, taxation, depreciation and amortisation (Ebitda), higher impairment loss on assets and higher tax expenses attributed to derecognition of deferred tax assets, primarily as a result of lower oil and gas prices outlook.
Excluding impairment loss, the group would record a net profit of RM2.6 billion, the national oil company said in statement today.
At Ebitda level, Petronas' profit stood at RM14.0 billion, down 26 per cent from RM18.8 billion in the corresponding quarter last year, in line with lower revenue partially offset by lower costs.
Group revenue stood at RM41.1 billion, down 25 per cent from RM55.1 billion in the corresponding quarter last year, mainly due to lower average realised prices for major products.
"Having persevered through nine grueling months, Petronas has recorded slight improvements in Q3 compared to the previous quarter resulting from sporadic easing of lockdowns which has led to gradual resumptions of economic activities worldwide," said president and group chief executive officer Tengku Muhammad Taufik.
"Amid the fluid operating environment brought about by the pandemic as well as prolonged volatility of oil prices, Petronas is adopting a cautious outlook and anticipates that the remainder of 2020 will be challenging," he added.
Petronas said it was better prepared to withstand a depressed industry outlook in the next quarter.
"We expect our performance to be continuously affected by the volatility of oil prices aggravated by the ongoing Covid-19 pandemic. We remain focused on our deliberate steps to reshape our portfolio, retool our human capital equation and focused execution at pace in managing the unpredictable business environment as we strive towards our 3-pronged growth strategy," he said.
Given the lower Ebitda coupled with the impairment loss on assets, Petronas recorded RM19.9 billion net loss for the first nine months of 2020, compared to RM36.4 billion net profit a year ago.
Its Ebitda stood at RM43.4 billion, a 41 per cent decrease from RM73.5 billion in the previous corresponding period.
Group revenue was RM134.7 billion, a decline of 24 per cent from RM176.2 billion a year ago.
This is predominantly driven by lower average realised prices for all products and lower sales volume, mostly from processed gas, liquefied natural gas (LNG) and petroleum products.
Petronas said it had generated positive cash flows from operating activities amounting to RM32.6 billion, despite the softer results during the period, a decline of 50 per cent from RM64.6 billion in the corresponding period last year.
Capital investments for the period amounting to RM22.5 billion, is mainly attributed to upstream projects.
Total assets decreased to RM594.8 billion as at September 30 this year, compared to RM622.4 billion as at December 31 2019, mainly due to impairment loss on assets during the period.
Shareholders' equity observed a decline to RM337.2 billion compared to RM389.1 billion as at end-2019, while dividends declared to shareholders amounted to RM34.0 billion whereby RM24.0 billion dividend payment was based on FY2019 performance.
The remaining RM10.0 billion was an additional dividend the board had approved to support the unprecedented challenges brought about by the Covid-19 pandemic.