Syabas Petronas 1Q net profit up 48% to RM21.7b

Written by Sheikh Al-Zaquan of theedgemalaysia,com

Friday, 26 August 2011 18:01

KUALA LUMPUR : Petroliam Nasional Bhd’s net profit increased 48% to RM21.65 billion in the first quarter ended June 30, 2011 from RM14.62 billion a year ago, boosted by the strong crude oil price but slower economic growth was expected to trim its earnings. The national oil corporation’s improved performance was driven by higher prices across its product range with favorable crude oil price pushing up the group's revenue by 24.6% to RM73 billion from RM58.6 billion a year ago. Petronas chief executive officer Datuk Shamsul Azhar Abbas said on Friday, Aug 26 the improved performance in the first quarter was however not sustainable as the macro economic conditions in the second half gets worsen due to the uncertainties in the developed countries. "Based on the July numbers, the economy is heading into a slowdown in the second quarter and this is expected to continue into next year. We had a good run during the first quarter but I think the party is over now," he said. In the January-March quarter, the average benchmark price of crude oil ranged from US$105 to US$110 per barrel, whereas it has since dropped to around US$80 to US$85 per barrel now due to the slower demand, he said As for the dividend payout to the government, Petronas previously said that it was aiming to fix its dividend payout at 30% of its annual net profit by FY2013. “We have already had discussions on this matter and we still plan to implement it in two years time,” said Shamsul. According to the notes to the accounts, Petronas paid RM12 billion in dividends in 2011. Petronas had during the three-month period ended June 30, 2011, paid a third tax exempt interim dividend under the Petroleum (Income Tax) Act of RM6 billion for the financial year ended March 31, 2011. It said the shareholders approved a tax exempt financial dividend under the Act amounting to RM22 billion for the financial year ended March 31, 2011, which was paid/is expected to be paid between June and November 2011. Petronas declared and paid a first tax exempt interim dividend under the Act amounting to RM2 billion for the financial year ending Dec 31, 2011. Petronas had earlier announced that it was changing its financial year end from Jan 31 to Dec 31 beginning FY12, its current financial year will hence be the nine months from April to December. To recap, Petronas’ dividend payout surged to a historical high of 74.4% for FY10 ended March 31, from 57% and 39% in FY09 and FY08 respectively. Its payout ratio is considered to be higher than the average oil majors as well as other national oil firms. Commenting on its prospects for the current year, Petronas said: “The operating environment of the oil and gas industry remains highly competitive and continues to be fraught with uncertainties on many fronts, namely geopolitical, economic as well as rising costs. “As we brace for these complex challenges and fast-changing business landscapes, our strategies are to continue with the growth agenda by emphasising on increasing petroleum production, growing the LNG business, expanding the downstream business and initiating investments in unconventional energy resources.”