KUALA LUMPUR: Petroliam Nasional Bhd registered a net loss of RM21 billion in the year ended December 31, 2020 (FY20) from a net profit of RM48.8 billion recorded in 2019.
Excluding impairment, Petronas' net profit dropped 78 per cent to RM10.5 billion during the year ended from RM48.8 billion recorded in the previous financial year.
Petronas said this was in line with lower revenue realised, partially offset by lower group costs incurred.
Group revenue during the year slid to RM178.7 billion from RM240.3 billion.
This was largely due to the effects of plummeting oil prices which saw lower average realised prices for all products, along with demand disruption resulting in lower sales volume from processed gas, petroleum products and liquefied natural gas (LNG).
Petronas president and group chief executive officer Tengku Muhammad Taufik Tengku Aziz said the group had weathered the toughest period in its history.
"As we go forward, we anticipate the oil and gas industry to still be impacted by uncertainties shaped by significant events of 2020. Notwithstanding this, the group remains committed to undertake all the necessary measures in our path to recovery while ensuring the safety of our people and minimal disruption to our business.
"We are focused on our tactical interventions towards preserving value and continue to pursue customer-centric solutions," he said in a statement today.
For the fourth quarter (Q4), Petronas recorded a net profit before impairment of RM200 million compared to RM9.4 billion net profit in the same quarter last year, primarily due to lower revenue and higher net other expenses.
This was partly negated by lower tax expenses.
During the quarter, an impairment loss on assets of RM1.3 billion was provided for, resulting in a net loss of RM1.1 billion compared to RM4.1 billion net profit in the corresponding quarter last year.
The group continued to generate a strong positive earnings before interest, taxes, depreciation, and amortisation (Ebitda) of RM11.9 billion.
Tengku Muhammad Taufik said the outlook of the industry remained uncertain and challenging with modest recovery in demand and prices as the Covid-19 impact continued.
"The emergence of fresh cases and repeated lockdowns to contain the pandemic, will continue to pose a challenge to the industry. Petronas remains cautiously optimistic and is looking to future-proof its portfolio by venturing into new energy spaces and pursuing innovation with focused execution.
"The group remains confident that its efforts and continued focus on commercial and operational excellence while preserving healthy levels of liquidity will ensure its business sustainability. We are also charting the growth pathway to secure new opportunities amidst the acceleration in energy transition, especially from new and non-traditional areas," he added.
"Although gas remains a crucial and cleaner source of fuel, diversification into renewable energy is imperative, with having the right skills and capabilities in place as part of the group's retooling human capital effort," he added.