March 21 -- Malaysia’s national oil and gas company on Monday posted $84 billion (MYR 375.3 billion) in proceeds for last year, attributing the increase of around 51 percent against 2021 mainly to higher prices.
Petroliam Nasional Bhd’s profit after tax also rose to $23 billion (MYR 101.6 billion), nearly double that of the preceding year’s $11 billion (MYR 50.9 billion).
The revenue boost was “mainly due to the favorable price impact for major products aligned with higher benchmark prices”, the government-owned company said in a press release.
Petronas reported a daily production average of 2.43 million barrels of oil equivalent per day (boepd) in 2022, up from the 2.27 million reported in 2021.
“This was mainly driven by overall improved demand for gas in Peninsular Malaysia coupled with realized opportunities and better performance from international operations”, the Kuala Lumpur-headquartered company said.
Petronas’ capital investments, or spending on physical assets, totaled $11 billion (MYR 50.1 billion) in 2022, while its total assets amounted to $159 billion (MYR 710.6 billion).
“Despite the prolonged volatility seen in the markets throughout 2022, moving forward the group will continue to exercise prudent financial management and firm discipline in reinvesting to provide the energy security needed today and for a just and responsible transition”, the earnings report stated.
Petronas said prices in the oil and gas industry may moderate this year “given an anticipated economic slowdown, even as it contends with prolonged market volatility”.
“In this environment, Petronas will continue to drive operational excellence in its core business while it pursues its growth and sustainability targets”, the release said.
Petronas last year made nine exploration discoveries at home and signed two production sharing contracts (PSCs) in Brazil and Indonesia. PSCs it inked in Malaysia in 2022 numbered six with the latest of those being its Block SB 2K Production Sharing Contract.
It also entered a farm-in agreement, or a partial interest transfer agreement, with France’s TotalEnergies and Australia’s Woodside Energy for a 30 percent equity in the Marine 20 Production Sharing Contract in Congo-Brazzaville.
In its gas business, Petronas said it had delivered 405 liquefied natural gas (LNG) cargoes from the Petronas LNG Complex on Borneo island and 43 more from its floating LNG facilities.
Other milestones included the awarding of an EPCC (engineering, procurement, construction and commissioning) contract for what Petronas says is Sabah state’s first nearshore LNG facility. The contract went to a joint venture of Japan’s JGC and South Korea’s Samsung Heavy Industries.
Downstream, Petronas said it had sold 24.9 billion liters, up by 17.5 percent from 2021. Its chemicals operations meanwhile produced over 10 million metric tons, of which 8.3 million metric tons were sold.
In renewables, it said it has reached 1.6 gigawatts of capacity “in operations and under development”.
Petronas also signed agreements in the electric vehicle, green transport charging, hydrogen and shipping sectors.
Petronas president and chief executive Muhammad Taufik noted that last year had indicated a deeper supply-demand unpredictability due not only to market changes but also to “an accelerated energy transition”.
“Petronas has no choice but to future-proof the group to preserve our ability to deliver long-term sustainable value as a National Oil Company and a global energy player”, he said in comments on 2022’s financial results.
“To this end, Petronas must remain resolute in providing energy that is secure, affordable and accessible towards uplifting communities and supporting countries to achieve their net zero ambitions”.
The company launched last year its roadmap towards net-zero carbon emissions by 2050. The plan includes a short-term goal to curb operational emissions to 49.5 million tons of carbon dioxide equivalent (mtCO2e) from its businesses at home by 2024.
Petronas said it has cut its emissions by 18.1 mtCO2e since 2013.