Wednesday, June 8, 2011

#Flash* Petronas FY net profit up 50% to US$17.46b, plans RM300b capex

KUALA LUMPUR: Petroliam Nasional Bhd reported net profit attributable to shareholders of US$17.46 billion in the financial year ended March 31, 2011 (FY11), which was a 50% increase from the US$11.64 billion in FY10.

It said on Wednesday, June 8 that revenue increased to US$76.82 billion, up 26.1% from US$60.92 billion. (The US dollar was used because it was the oil corporation's functional currency after being translated from ringgit Malaysia.)

President and CEO'' Datuk Shamsul Azhar Abbas said Petronas will be spending RM300 billion in capital expenditure for the next five years, this was an upward revision from the RM250 billion mentioned a few months ago.

'The RM300 billion excludes (the money we intend to spend on) mergers and acquisitions (the company may engage in the future).

For the fourth quarter, its earnings increased 49.8% to US$3.49 billion from US$2.33 billion the year before on the back of higher realised prices for petroleum products, crude oil and condensates, as well as other energy commodities.'' Its revenue increased 22.8% to US$21.45 billion from US$17.47 billion.

Shamsul said:'' 'All of our products have shown an increase in their revenue streams, while most of the products also increased in volume. Most Asian economies grew during this period, and demand for oil rose 2.7% year-on-year'.

Though the company's earnings benefited from soaring crude prices, he emphasized that prices moderated after.

'Demand began to show signs of slowing down towards the end of the quarter, largely owing to high crude oil prices. Crude oil prices spiraled upwards by 37.7% in the fourth quarter on a year-to-year comparison driven by the political unrests in the Middle East and North African region and subsequent uncertainties on adequacy of supply following disruption of Libyan production, which has taken off some 1.4 million barrels per day of the market,' said Shamsul.

He added Petronas's payment of dividends to the government is currently being negotiated, as it hopes to distribute 30% of net profit beginning FY2012.

'There is basically a limit to how far, and how long more we can sustain (payments similar to the RM30 billion made the last financial year). Moving forward, we will work on a payout ratio of 30% of our net, this is basically in line with industry practice,' he said.

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