PETRONAS Integrated Report 2021
Integrated Report 2021
Integrated Report 2021
PETRONAS Integrated Report 2021
A progressive energy and solutions partner enriching lives for a sustainable future.
Financial Highlights
PETRONAS remained on steady
footing to weather possible market shocks
PETRONAS delivered a strong set of financial and operational results for the year as we continued to accelerate recovery efforts. The focused execution of strategies coupled with agile and resilient operations, have been key to PETRONAS' commendable performance in 2021.
Revenue
(in RM Billion)
RM248.0 billion
2020
178.7
2021
248.0
The significant increase in revenue was contributed by rising energy prices, following a rebound in demand for gas, petroleum products and Liquefied Natural Gas (LNG), amongst other market influences.
Profit After Tax (PAT) excluding impairment
(in RM Billion)
RM48.6 billion
2020
-21.0
2021
48.6
The substantial rise in profit was driven by a rebound in revenue and the effectiveness of cost discipline measures that PETRONAS continued to practice.
Cash Flows from Operations (CFFO)
(in RM Billion)
RM78.6 billion
2020
40.7
2021
78.6
Stronger cash flow during the year resulted in a 29 per cent rise in the Group's net cash position to RM67.2 billion for 2021.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)
(in RM Billion)
RM100.5 billion
2020
55.3
2021
100.5
In line with the higher revenue and effective cost management, EBITDA rose to RM100.5 billion, an 82 per cent increase from the previous year's RM55.3 billion.
Chairman
Tan Sri Dato' Seri
Mohd Bakke Salleh
PETRONAS is well-positioned to progress with pace and resilience to deliver profitable and sustainable growth aligned to our Three-Pronged Growth Strategy and net zero carbon emissions by 2050 (NZCE 2050) aspiration. 
President and Group Chief Executive Officer
Datuk Tengku
Muhammad Taufik
The Group is confident that with the strength and reliability of its core portfolio combined with new offerings of cleaner energy solutions, PETRONAS will evolve to present itself to customers as an 'energy superstore' that powers businesses and fuels progress in a just and sustainable manner.
Business Highlights
Focused execution of strategies, along with agile and resilient operations have been key to the Group's commendable performance in 2021
Our role as Malaysia's fully integrated energy provider is built on a dynamic value chain. Through our core businesses, we are able to deliver society's growing energy needs and contribute to a better tomorrow for everyone.
We are committed to keeping the industry on our forecasted level of
activities for the next 3 years, as well as contracting opportunities for the next 5 years.
We look forward to forming strong collaborations with our industry partners for the
country's and industry's mutual growth.
Our Continued Value Creation
PETRONAS is committed to creating long-term value that focuses on growth towards sustainability.
Continued Value Creation is one of the Sustainability Lenses which focuses on making sound investments that
will benefit the business and community in the long run. Efforts such as research on carbon capture and storage
(CCS) and harnessing solar energy will bring us closer to achieving NZCE 2050.
Sustainability Highlights
Sustainability is deeply rooted in our Statement of Purpose, "A progressive energy and solutions partner enriching lives for a sustainable future". As a purpose-driven organisation, sustainability considerations contribute directly to what we do as a business, how we operate and how we engage with our stakeholders.
Continued Value Creation
Drive long-term business value creation through responsible investments.
Safeguard the Environment
Collaboratively reduce environmental impact by transitioning to lower carbon energy solutions and deploying innovative operations and technologies.
Positive Social Impact
Create positive alliances with the communities in which we operate by protecting and adding value to the well-being of employees, partners and society.
Responsible Governance
Safeguard the organisation's commitment through strong governance mechanisms and ethical business practices.
Net Zero Carbon Emissions by 2050 (NZCE 2050)
PETRONAS' leadership with a mandate from the Board announced our net zero
carbon emissions by 2050 (NZCE 2050) aspiration. The delivery of this aspiration will
build resilience and better prepare the organisation and Malaysia's value chain for a
sustainable future, create social value, and promote a Just Transition.
aspiration is defined as
Balancing the remaining Scope 1 and Scope 2 GHG emissions from its assets under operational control with carbon offsets.
Because We Care
Leveraging our wide network, PETRONAS partnered with various state governments
and forged several alliances to drive economic recovery; through on-the-ground
support, digital solutions or monetary contributions.
PETRONAS contributed monetary and medical equipment/supply aid during the COVID-19 pandemic and natural disasters that occurred in 2021. This included contributions to various hospitals, COVID-19 vaccination and quarantine centres, including the Malaysia Agro Exposition Park Serdang (MAEPS). Additionally, PETRONAS also channeled about RM15 million for flood relief efforts throughout the country.
We leveraged on technology and innovative solutions to ensure the well being of our customers especially during the lockdown period; such as Setel® App to enable seamless purchases at stations, and security of energy supply through ROVR, ISO tanks, bunker solutions, Virtual Pipeline System (VPS) and others.
We continued to support our suppliers and vendors during the lockdown, such as helping to obtain financial assistance, and facilitate approvals with authorities to operate in order to ensure business continuity.
The safety and well-being of our employees remain a top priority. A total of 11 vaccination centres across our operations nationwide were established to accelerate vaccinations amongst employees. In addition, the implementation of a flexible working arrangement policy, ensured the safety and health of employees. Various support channels were introduced to employees for mental well-being and to assist in work-life balance.
PETRONAS initiated the COVID-19 relief aid by providing necessary supplies to impacted communities located across our domestic and international assets. This included donations of more than RM2 million for the PETRONAS Food Bank, contributions of medical equipment and hygiene products/kits and funded over RM30 million worth of learning devices that benefited 12,000 B40 students to support virtual learning during the pandemic.
Message from the President and Group Chief Executive Officer
Esteemed Stakeholders,
As we are now all too aware, recent events have overtaken the brief respite which the oil and gas industry experienced in 2021, following the unprecedented challenges of 2020. The impact of the tragic conflict between Russia and Ukraine, which continues to unfold as I write this, is still being felt globally and it is our hope that a peaceful resolution will be achieved soon.
This conflict has roiled energy markets and has presented fresh uncertainties that threaten an already uneven and extremely fragile post-pandemic recovery. Driven by heightened concern over disruption in energy supply in a market already facing structural supply issues, prices for human sustenance and economic activity have escalated to record highs- presenting even more complex challenges and added uncertainty to the economic recovery
Message from the Chairman
Dear Stakeholders,
Two years have passed since the pandemic began, and our world continues to be challenged by volatility and uncertainty on an unprecedented scale in living memory. Even as countries and industries alike strive to recover from the brutal impact of COVID-19, they now face newfound challenges in the wake of the ongoing Russia-Ukraine conflict whose consequences may well long outlast the hostilities themselves and which are likely to reshape the industry landscape in fundamental and complex ways.
