Integrated Report 2023
We are a leading global energy company committed to producing and delivering energy and solutions in a responsible and sustainable manner. As Malaysia's national oil and gas company, we safeguard and manage the nation's hydrocarbon resources to ensure national energy security and maximise value. We are dedicated to achieving net zero carbon emissions by 2050 and being a valuable partner in a just energy transition to a lower carbon energy future.
Statement of Purpose:
Loyalty
Loyal to corporation
Professionalism
Strive for excellence
Integrity
Honest and upright
Cohesiveness
United, trust and respect for each other
The global economy continues to face persistent challenges, marked by high interest rates and elevated inflation, impacting the cost of capital.
We continued to exercise strict capital discipline and robust portfolio management to deliver a resilient financial performance despite the volatile operating environment.
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The eight per cent decrease is primarily due to the unfavourable average realised prices, partly cushioned by the higher sales volume mainly from petroleum products and foreign exchange impact.
At the heart of the organisation is PETRONAS' commitment to nation-building. We carefully select where we can make the most significant positive impact on society. PETRONAS has contributed more than RM850 million for the year through 720 social impact programmes that benefitted almost three million people in Malaysia and the countries where we operate.
Delivering the energy needed to tackle the energy trilemma is a complex existential challenge – but one where PETRONAS is responding with a clear strategy and agility to be part of the solution for a just and responsible energy transition.
We take a balanced approach in strengthening our Core Business and capturing new growth opportunities for New Business while responsibly managing our carbon emissions, demonstrating our clear ambition for a just transition.
We remained resolute in executing the PETRONAS Energy Transition Strategy, which focuses on enabling a balanced and orderly transition towards a lower carbon future. PETRONAS firmly supports the global goal of a lower carbon future and advocates for a just transition that recognises the unique challenges and economic requirements of the various energy markets.
More Energy, Less Emissions
Our Core Business continues to be an anchor for PETRONAS as it is expected to generate steady cash flows to help finance our decarbonisation efforts and investments in New Business.
Capturing New Growth Opportunities
Nine New Business have been identified and pursued to strengthen the robustness of our portfolio. Early results in New Business growth and progressive transition of our portfolio have been observed especially in renewable energy and specialty chemicals.
Pathway to Net Zero
Our Net Zero Carbon Emissions by 2050 Pathway is a pledge to decarbonise our portfolio. We have achieved meaningful milestones in our sustainability journey.
We deliver energy with reduced carbon emissions at competitive cost through our core businesses and offer cleaner energy solutions through our subsidiary company, Gentari.
Upstream business faced a volatile year in 2023, with fluctuating oil and gas prices, increasing demand amid geopolitical tensions and the global push towards energy transition. Despite these challenges, we remain steadfast in our commitment towards the energy security for Malaysia and our customers worldwide. We responded by focusing on sustainable supply, cost optimisation and emissions reduction.
Learn MoreGas business achieved significant milestones and demonstrated resilience in 2023. We continued to strengthen our position as a one-stop-centre for lower carbon energy solutions and a reliable provider of natural gas.
Learn MoreDownstream business showcased resilience, driving operational excellence and maximising resources across our value chain. We navigated challenges and seized opportunities in a recovering market, with demand nearing pre-COVID-19 levels across all units. Our production volumes in petroleum and petrochemical products saw an uptick due to stable plant operations and reliability. Significantly, our marketing arm recorded a rise in sales volume for the retail and commercial segments, fuelled by economic recovery.
Learn MoreWith innovation being integral to the energy landscape amid accelerated global energy transition, PETRONAS’ Project Delivery and Technology (PD&T) Division has been pivotal in driving our groupwide business and sustainability ambitions.
Learn MoreThe energy transition’s accelerated pace in 2023, supported by a diverse coalition of stakeholders, underscores a unified commitment to sustainable energy. Poised to amplify PETRONAS’ ambitions in renewable energy, hydrogen and green mobility, we are contributing to the PETRONAS Energy Transition Strategy and the Net Zero Carbon Emissions by 2050 Pathway.
Learn MoreMISC Group stayed resilient and steadfast in contributing to PETRONAS’ overall financial performance. As a key solutions provider to PETRONAS, MISC recorded a 2.9 per cent increase in revenue mainly due to higher progress in both new and ongoing projects in the Marine and Heavy Engineering segment and benefitting from elevated charter rates in the Petroleum and Product Shipping, and Gas Assets and Solutions segments.
Learn MoreKLCCP Stapled Group has produced solid results with profits going up by 17.0 per cent due to the improved performance across all business segments driven by increased footfall and consumer spending in our malls, higher hotel occupancy, and the expansion of operations in car park and facilities management.
Learn MoreWe remain steadfast in our commitment to accelerate and scale up our efforts towards a lower carbon energy future that supports nature and biodiversity conservation as well as social progress.
We revalidated our material topics, ensuring alignment with our commitment to sustainability, strategic endeavours and transparent disclosure practices.
We continue to accelerate our climate actions to realise our Net Zero Carbon Emissions by 2050 Pathway. Throughout 2023, we continued to stay the course to advance our performance.
We collaborate with our employees, suppliers and communities making a concerted effort to embed sustainability and promote responsible growth in our practices.
In 2023, GHG emissions from our global operations recorded 53.64 million tonnes CO2e.
This index outlines the mapping of ESG disclosures; IPIECA, GRI, WEF and TCFD are aligned with this report's content. This ensures a comprehensive and coherent approach to ESG reporting and demonstrates our commitment to sustainability, transparency and responsible business practices.
