PETRONAS Group Financial Results AnnouncementQ1 FY2016

© 2016 PETROLIAM NASIONAL BERHAD (PETRONAS)

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Cautionary StatementForward-looking statements in this Financial Results Announcement presentation or insubsequent discussions with regards to this presentation involve inherent risks anduncertainties. Should one or more of these or other uncertainties or risks materialise, actualresults may vary materially from those estimated, anticipated or projected. Specifically, butwithout limitation, capital costs could increase, projects could be delayed, and anticipatedimprovements in capacity, performance or profit levels might not be fully realised. AlthoughPETRONAS believes that the expectations of its management as reflected by such forward-looking statements are reasonable based on information currently available to it, noassurances can be given that such expectations will prove to have been correct. Accordingly,you are cautioned not to place undue reliance on the forward-looking statements, whichspeak only as of the date they are made. PETRONAS undertakes no obligation to update orrevise any of them, whether as a result of new information, future developments orotherwise.

All rights reserved. No part of this document may be reproduced, stored in a retrievalsystem or transmitted in any form or by any means (electronic, mechanical, photocopying,recording or otherwise) without the permission of the copyright owner. PETRONAS makes norepresentation or warranty, whether express or implied, as to the accuracy or completenessof the facts presented. PETRONAS disclaims responsibility from any liability arising out ofreliance on the contents of this publication.

PETRONAS Group Financial Results AnnouncementFinancial Highlights

Crude oil, condensate and natural gas entitlement **

Kboe/d

1,815

Key Indicators

Dated BrentUSD/bbl

33.89

Q1 201553.97

37%

Exchange rateUSD/MYR

4.20

Q1 20153.62

16%

Q1 20151,672

9%

REVENUE

49.1Q1 2015

66.2

26%

Q1 FY2016 Financial Results

RM Bil

PAT

4.6

Q1 201511.4

60%

CFFO

9.7Q1 2015

17.3

↓ 44%

PAT*

7.4

Q1 201511.6

36%

Capital Investments

RM Bil

* Excluding identified items mainly comprising net impairment on assets after tax of RM2.8 bil for Q1 FY2016 and RM0.2 bil for Q1 FY2015** Represents PETRONAS Group’s entitlement to Malaysia’s production and PETRONAS Group’s international entitlement volume

Financial Results Announcement 31 March 2016, Financial Highlights | Page 1

12.1

11.3

Q1 2015

Q1 2016Q1 2016

7%

* Represents Malaysia’s production (PETRONAS Group and other Operators) and PETRONAS Group’s international equity production volume**Represents PETRONAS Group’s entitlement to Malaysia’s production and PETRONAS Group’s international entitlement volume

1,672 1,815

Q1 2015 Q1 2016

Total Production Entitlement

Production

Iraq - higher production entitlement

Indonesia – new production stream

Partly offset by:

- natural decline

Crude Oil and Natural Gas Production*

(kboe/d)

Operational Indicators

+

**

2,3952,452

9%

*

Q1 2016

2%

Financial Results Announcement 31 March 2016, Financial Highlights | Page 2

66.2

60.1

49.1

Q1 2015

Q4 2015

Q1 2016

Q1 FY2016 Group Financial Results

Revenue

Cash Flows from Operating Activities

Profit after Tax*

EBITDA

26%

*excluding identified items mainly comprising net impairment on assets

11.6

9.9

7.4

Q1 2015

Q4 2015

Q1 2016

21.9

19.2

15.6

Q1 2015

Q4 2015

Q1 2016

17.3

18.4

9.7

Q1 2015

Q4 2015

Q1 2016

18%

36%25%

29%19%

47% 44%

Financial Results Announcement 31 March 2016, Financial Highlights | Page 3

RM Bil

7.9

2.3

Q1 2015

Q1 201671%

RM Bil

Business Segment Results

1.9

1.1

Q1 2015

Q1 201642%

0.9

0.4

Q1 2015

Q1 2016

Upstream

• Lower crude and LNG prices• Lower LNG sales volume• Higher net impairment on assets

Corporate & Others

• Net foreign exchange loss on USD investments for Q1 FY2016

• Higher impairment on assets

Downstream

• Lower refining and marketing margins

PAT by Business Segment (includes inter-segment transactions)

Financial Results Announcement 31 March 2016, Financial Highlights | Page 4

56%

80%

20%

RM11.3 bil

9.8

1.4

11.3

1.7

4.2

Net Inflows Net Outflows

Other Financial Highlights

Cash Flows Q1 FY2016

RM Bil

11.2

17.2

Malaysia

Total assets at RM567.6 bil (↓ 4%*)

Shareholders’ equity at RM364.7 bil (↓ 3%*)

Cash and fund investments at RM130.7 bil

Borrowings at RM53.8 bil

Gearing at 15.8% (↓ from 16.0%**)

ROACE at 3.5%

Significant Items

* compared to 31 December 2015

International

Dividends to Minority Interest

Capital Investments

Cash from financing Other net cash outflows

Cash from operations

** as at 31 December 2015

Financial Results Announcement 31 March 2016, Financial Highlights | Page 5

Upstream Business

Operational Highlights

Project Delivery & Others

Operational Resource & Reserve

2% Higher productionQ1’16 vs. Q1’15

ORRR 1.2xRRR 0.9x

2 Exploration DiscoveriesMalaysia 1, International 1

Significant milestones achieved in delivering long term sustainable growth

Venture & Agreement

LNG Agreement:• SPA between PETRONAS LNG

Ltd & Toho Gas

PETRONAS names World’s 1st Floating LNG Facility “PFLNG SATU”

Baronia Achieves 6 Million Man Hours without LTI

Resumption of Sabah Sarawak Gas Pipeline“SSGP” Operations

Financial Results Announcement 31 March 2016, Upstream | Page 1

797 765 834

178 169 176

1,420 1,3921,442

2,395 2,326 2,452

Q1 2015 Q4 2015 Q1 2016

Crude Condensate Gas

Operational HighlightsUpstream production for Q1 2016 was higher than Q1 and Q4 2015

Higher than 2015 corresponding period Q1 2015 (↑ 2%) Q4 2015 (↑ 5%)

Upstream performance : Production enhancement/new

production/ramp-up Iraq higher production entitlement Higher demand by East Malaysia

gas customers Natural decline in Egypt and

Malaysia

5%

2%

Production (kboe/d)

Financial Results Announcement 31 March 2016, Upstream | Page 2

Operational HighlightsLNG Sales Volume was lower, while Sales Gas Delivery was higher compared to Q1 and Q4 2015

Lower LNG Sales Volume mainly due totrading volumes

Sales Gas Delivery (mmscfd)

2,167 2,153 2,136

199 187 273 267 256 313

2,633 2,596 2,722

Q1 2015 Q4 2015 Q1 2016

Peninsular Msia Sarawak Sabah

6.94 6.60 6.65

0.080.57 0.96 0.370.53 0.50 0.25

8.04 8.06 7.35

Q1 2015 Q4 2015 Q1 2016

System - PLC System - Others

Trading - Out-Out Trading - Others

LNG Sales Volume (mil tonnes)

Higher Sales Gas Delivery due to higherdemand by East Malaysia gas customers

9%

9%

5%

3%

Financial Results Announcement 31 March 2016, Upstream | Page 3

Downstream Business

Downstream Growth Projects

SAMUR has achieved 99%completion and is expected tocommence in June 2016.

The Pengerang Integrated Complex (PIC) project is on track at 28%.

Progressing as per plan

Financial Results Announcement 31 March 2016, Downstream | Page 1

DOWNSTREAM BUSINESS

72.4 69.0

58.3 55.3

Q1 FY2015 Q1 FY2016

Petroleum Products Crude

Crude and Petroleum Products Sales Volume

130.7

Downstream Sales VolumeImproved feedstock supply for Petrochemical Products

124.3

5%

Q1 FY2016 vs. Q1 FY2015

Lower trading volumes because profitable trading opportunities were limited

1.6 1.7

Q1 FY2015 Q1 FY2016

Q1 FY2016 vs. Q1 FY2015

Higher sales in line with higher production on the back of improved feedstock supply

Petrochemical Products Sales Volume

6%

MMTMbbls

Financial Results Announcement 31 March 2016, Downstream | Page 2

88.477.3

90.177.682.0

89.3 92.2

78.5

Domestic

Refineries

South Africa

Refinery

Petrochemical

Plants

Gas Processing

Plants

Q1 FY2015 Q1 FY2016

DOWNSTREAM BUSINESS

Plant Utilisation (%)

Plant UtilisationHigher utilisation rates for all manufacturing units except Domestic Refineries

Domestic Refineries – more maintenance activities

South Africa Refinery – stable and reliable plant performance

Petrochemical Plants – improved feedstock supply

Gas Processing Plants – higher feedgas processed at Gas Processing Plants,Kertih

Financial Results Announcement 31 March 2016, Downstream | Page 3

95.30

97.25

99.97 99.98

Q1 FY2015 Q1 FY2016

Gas Processing Gas Transmission

Gas Processing & Transmission Reliability (%)

DOWNSTREAM BUSINESSGas Processing and Transmission ReliabilityImproved performance

Gas Processing Plants – improved plant performance

Gas Transmission – improved transmission operations performance

Financial Results Announcement 31 March 2016, Downstream | Page 4

Thank you