KUALA LUMPUR, March 2 — National oil and gas corporation Petronas said on Tuesday geopolitical risks were set to result in another volatile year for the industry, after reporting a swing to profit in the fourth quarter.
The ongoing conflict between Russia and Ukraine had already caused commodity prices to fluctuate wildly, Petronas Chief Executive Tengku Muhammad Taufik Tengku Aziz said.
“In our role as an energy player, as we navigate this very volatile period, Petronas must be responsible… not to disrupt the energy security of all its customers around the world,” he told a news conference.
Tengku Muhammad said the industry had faced some pressure to move away from carbon-intensive portfolios, but that he expected demand for gas in Malaysia and the region to see an uptick post-pandemic.
“We view that the demand for gas and energy is expected to remain resilient,” said Tengku Muhammad.
Petronas posted a profit of RM13.4 billion ringgit (US$3.2 billion) for the last three months of 2021, versus a loss of 1.1 billion ringgit in the same period a year before.
Revenue rose 74 per cent to RM76.6 billion in the December quarter, as global demand recovered with the opening of economies from Covid-19 lockdowns, the company said.
For 2021, Petronas recorded profit after tax of RM48.6 billion, while its cash flow from operations was RM78.6 billion.
The company said it hopes its capital expenditure will recover to RM40 to RM50 billion this year after dropping to RM30.5 billion in 2021 due to the coronavirus pandemic.
Petronas plans to launch a carbon management unit to accelerate its decarbonisation efforts, said Tengku Muhammad, noting it could include a regional carbon storage hub.
The group has partnered with a Malaysian unit of Exxon Mobil Corp, a local subsidiary of Royal Dutch Shell, and POSCO businesses to explore opportunities in carbon capture and storage technologies.
It also aims to establish a new clean energy entity in mid-2022 to offer low-carbon solutions for customers in renewables, hydrogen and green mobility, he said.
— Reuters
