KUALA LUMPUR, Malaysia — Petronas has recorded a higher profit after tax of RM10.0 billion in the third quarter ended Sept 30, 2017, from RM6.1 billion in the same period last year.

The national oil company attributed the stronger profit primarily due to higher revenue, in addition to lower net impairment on assets and well costs, but was partially offset by higher tax expenses, product costs and amortisation of oil and gas properties.

The group’s revenue for the quarter totalled RM53.7 billion, up by 14 per cent RM47.01 billion from the corresponding quarter last year, driven by higher average realised prices for major products and impact of foreign exchange rate.

President and Group Chief Executive Officer, Wan Zulkiflee Wan Ariffin said the group remained committed to improving efficiency across its operations, and would continue to focus on its transformation initiatives, which have produced tangible results.

“We intend to enhance our efforts to take advantage of the current recovery in oil prices for Petronas to close the year strongly,” he said in a statement today.

Capital investments for the quarter was RM12.5 billion, mainly attributable to the Refinery and Petrochemical Integrated Development (RAPID) project in Johor.

For the cumulative period ended Sept 30, 2017, Petronas’ cumulative profit after tax was at RM27.3 billion compared with RM12.5 billion in the same period last year, primarily due to lower net impairment on assets and well costs.

Revenue for the period stood at RM161.8 billion from RM140.7 billion previously, mainly due to the impact of higher average realised prices and the impact of foreign exchange rate.

In light of modest recovery in oil price and the continued drive for efficiency improvement, Petronas expects the group’s overall year-end performance to be better than last year.

The group’s crude oil, condensate and natural gas entitlement volume for the period ended Sept 30, 2017, was 1.74 million barrels of oil equivalent (BOE) per day, compared to 1.75 million BOE in the same period last year, in line with lower production.

Total production volume was 2.29 million BOE per day compared with 2.33 million BOE per day in the same period a year earlier.

Total assets decreased to RM600.3 billion as at Sept 30, 2017 compared with RM603.4 billion as at Dec 31, 2016 due to a stronger ringgit against US dollar.

Shareholders’ equity decreased to RM380.3 billion mainly due to the final dividend of RM13.0 billion to the government declared for the financial year ended Dec 31, 2016 (FY16).

The interim dividend of RM3.0 billion declared for FY17, as well as foreign exchange rate impact was partially offset by profit generated during the period.

Gearing ratio decreased to 17.3 per cent as at Sept 30, 2017 compared to 17.4 per cent as at Dec 31, 2016.

Return on average capital employed increased to 8.6 per cent as at Sept 30, 2017, compared to 5.4 per cent as at Dec 31, 2016, in line with higher profit recorded.