In today’s edition of Evening 5 — Petronas says that it is anticipating lower profit for FY2023 as it saw a 22% drop in its 3Q earnings. Meanwhile, MHB has bagged a mammoth RM1.2 billion offshore wind project for TenneT’s 2GW Programme in the Netherlands.
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NewsTranscript
00:00 [Music]
00:04 Petroleum National expects lower profit for its FY 2023 compared to the record high earnings
00:09 it saw in FY 2022 as net profit for its third quarter fell by 22% year-on-year to $23.9 billion,
00:18 mainly due to lower average realized prices in tandem with the declining benchmark oil prices.
00:23 Revenue declined by 16% to $82.9 billion from the $98.9 billion that was posted a year ago.
00:30 The national oil company recorded its highest annual net profit of $101.62 billion in FY 2022,
00:36 more than double the $50.87 billion it earned in FY 2021 as it benefited from elevated oil prices.
00:44 Petronas expects the volatility in oil and gas prices to continue to be elevated by
00:48 persistent economic uncertainties and heightened concerns over global energy security amid
00:54 geopolitical tensions in the Middle East, which colors its anticipation of lower profits for
00:59 the current financial year. President and Group CEO Tan Sri Tunku Mohamad Taufik says
01:05 that Petronas' performance in the third quarter demonstrates the focused delivery of its energy
01:10 transition strategy despite a volatile energy market. Mohamad Taufik says that Petronas is
01:15 on track to achieve full utilization of the 20% capital expenditure committed to intensify
01:21 decarbonization of the Group's operations and growth in new business. Petronas also remains
01:26 resolute to navigate the cyclical swings in the energy market with a firm commitment to
01:31 not disrupt and make every effort to provide energy that is safe, responsibly produced,
01:37 co-optimized and emissions abated.
01:44 Malaysia Marine and Heavy Engineering Holdings has secured a subcontract for an offshore
01:49 substation high-voltage direct current platform from Petrofac International UAE worth RM1.2 billion.
01:56 The scope of the subcontract, which was awarded to MHPE's wholly owned subsidiary,
02:00 Malaysia Marine and Heavy Engineering, consists of construction engineering, fabrication,
02:06 mechanical completion, loadout and sea fastening, and architectural works on a engineering,
02:11 procurement and construction basis. The subcontract is for approximately 54 months,
02:15 with fabrication to begin in 2025 and to be completed in 2028. MHPE added that in addition,
02:22 MMHE and Petrofac will collaborate towards the possibility of fabrication works
02:27 for two additional units of OSS of similar size. Petrofac's delivery of the OSS is for
02:33 Netherlands' national electricity transmission system operator Tenties 2GW program. The 2GW
02:39 program is an energy transition program to make Europe the first climate-neutral continent by 2050.
02:45 MHPE Managing Director and CEO Pandai Othman says that the project represents a significant
02:50 achievement for MHPE on two fronts that it has been diligently pursuing, venturing into renewable
02:56 energy and establishing its presence internationally. He adds that MHPE will be expanding further the
03:01 reactivation of MMHE East Yard, which will be utilized alongside MMHE West Yard in delivering
03:08 this project. Public Bank's third quarter net profit rose by 7% year-on-year to $1.7 billion
03:19 on the back of healthy loans and customer deposits growth. Revenue for the quarter ended 18% up
03:25 year-on-year from $5.5 billion to $6.48 billion. No dividend was declared for the quarter. Public
03:32 Bank said that for the quarter under review, net interest and Islamic banking income increased by
03:38 90.2 million while non-interest and financing income improved by 16.6 million ringgit. The
03:44 bank said these were partially offset by higher other operating expenses and higher loan impairment
03:50 allowance. MD and CEO Tan Sri Dr. Teh Alek said that the group continued to demonstrate resilience
03:56 in its financial performance with its loans and deposits businesses sustaining a positive growth
04:02 trajectory and achieving a commendable net ROE of 13.1%. On its prospects, Public Bank said it
04:09 remains committed to strengthening its regional presence in Indochina while leveraging its strong
04:14 branding and prudent management practices. In particular, the bank says it continues to expand
04:19 its business in Vietnam, capitalizing on the robust economic environment. Teh adds that as
04:25 the Malaysian economy remains on a positive growth path, there is continued financing demand for
04:30 property and car ownership as well as from SME businesses. The bank also continues to see
04:35 emerging opportunities from the development in the ESG landscape and digital transformation.
04:40 Teh says the group's agility supported by its healthy capital and liquidity position coupled
04:45 with its resilient asset quality and prudent loan loss reserves will enable Public Bank
04:50 to generate sustainable profit through challenging times.
04:59 Axiata Group saw its net loss widen to RM797.4 million for its third quarter from RM52.4 million
05:06 a year ago, mainly due to asset impairment and lower share of results from subsidiary
05:11 Selkom Digi. The impairment of RM1.01 billion during the quarter followed the reclassification
05:16 of its Nepal unit Ensel as an asset held for sale, resulting in a widened discontinuing operations
05:23 loss of RM824.5 million. Net profit from continuing operations stood at RM27.09 million against a net
05:31 loss of RM412.1 million a year ago, driven by lower foreign exchange losses mainly from US
05:37 dollar-denominated borrowings and working capital, lower finance costs and higher share of profits
05:43 from associates. Quarterly revenue, however, improved to RM5.7 billion from RM5.37 billion.
05:49 Chairman Tan Sri Sharia Riza Rizwan said that Axiata continues on its value creation journey
05:55 despite the significant macroeconomic challenges. He said it remains focused on adapting its strategy,
06:00 refining its investment portfolio and cultivating the right partnerships to position the Group for
06:05 long-term success. Group CEO and MD Vivek Sood says that Axiata remains on track towards meeting
06:11 its 2023 headline KPIs and that its assets will continue to grow as market structure improves,
06:17 price stability prevails and demand for mobile, digital and enterprise solutions remain.
06:22 Meanwhile, Bloomberg reported quoting sources that NTT Docomo has joined a consortium led by
06:27 Mitsui & Co in the bidding for a majority stake in Axiata's tower unit, E.DotCo Group. The consortium,
06:34 which also includes J Tower, is offering to buy new shares in E.DotCo for about US$750 million.
06:39 Bloomberg also reported that the Mitsui-led consortium is also interested in buying
06:45 existing shares owned by Innovation Network Corp, Kesana Nasional and Kumpulan Wang Persaraan
06:50 di Perbadankan or KWAP. A potential purchase by the Japanese consortium could be worth about
06:55 US$1.5 billion and would give the group a controlling stake in E.DotCo of more than 50%,
07:00 according to people familiar with the matter.
07:09 FGV Holdings saw a more than sevenfold decrease in net profit for its third quarter to $31.98
07:15 million from $241.7 million a year ago, owning to a significant fall in profit contribution from its
07:22 plantation segment. Revenue fell 21% year-on-year to $4.91 billion on the back of lower crude palm
07:28 oil realized prices. No dividends were declared for the quarter. According to FGV, the sector's
07:33 results were further brought down by the lower margin achieved in the downstream business and
07:38 share of lost results in JVs of $9.55 million compared to a share of profit of $10.77 million
07:45 in the previous year's quarter. FGV was more bullish about the quarter ahead as it projected
07:50 CPO prices of between $3,800 per metric tonne to $4,000 per metric tonne. The planter said this
07:57 is supported by the anticipated impact of El Nino, heightened demand in India driven by the
08:02 Wally restocking activities and the expanding palm biodiesel industry, all contributing to a bolstered
08:08 price environment. FGV added that although production costs are expected to remain elevated,
08:13 a potential moderation is foreseen due to lower fertilizer and energy consumption prices.
08:18 Barring any unforeseen circumstances, FGV said it anticipates to achieve a satisfactory financial
08:24 performance.
08:25 [MUSIC]