Petronas returns to profit on oil, plans clean energy unit

Bloomberg

Malaysia’s state oil company Petroliam Nasional Bhd. swung to profit in the final three months of 2021, due to a smaller impairment loss, higher earnings and elevated crude oil prices.
Petronas posted net income of 13.4 billion ringgit ($3.2 billion) in the December quarter, versus a 1.1 billion ringgit loss a year earlier, the company said. Revenue climbed 74% to 76.6 billion ringgit. Full-year profit stood at 48.6 billion ringgit, compared with a loss of 21 billion ringgit in 2020, as the company rode a rally in crude prices that lifted incomes of large oil producers from Russia’s Rosneft PJSC to BP Plc. Brent prices have since moved higher and surged past $110 after Russia’s invasion of Ukraine roiled markets from energy to metals and grains.
“As we speak, the numbers are in three digits, $100-$103,” Group Chief
Executive Officer Tengku Muhammad Taufik said. “This is a bit of a departure of what we believe fundamentals should be.”
Oil should be in the $70-$80 range after factoring in investments and the risk of higher supplies from Opec+, he added.
The company paid 25 billion ringgit in total dividend to the government last year, according to the statement. That compares with a 34 billion ringgit payout in 2020, of which 10 billion ringgit was a special dividend.
Petronas will set up an entity by the middle of the year to focus on renewable energy, blue and green hydrogen and green mobility, Muhammad Taufik said.
It will form a unit to manage carbon storage from its emissions, he said. Petronas’ capital investments in 2021 dropped 9% to 30.5 billion ringgit as several projects were hurt by prolonged movement restrictions and supply chain snarl-ups, Group Chief Financial Officer Liza Mustapha said.