Petronas has reported a 60% drop in its pre-tax profit in 1Q16 to RM6.8 billion, compared to RM17 billion in the corresponding period of last year.
The company’s revenue also fell 26% during 1Q16 to RM49.1 billion, compared to RM66.2 billion in 1Q15. Profit after tax and impairments was recorded at RM4.6 billion against RM11.4 billion in the previous corresponding quarter.
Petronas attributed the fall in revenue to lower product prices following the prolonged downward trend of benchmark Dated Brent and Japan Customs Cleared (JCC) prices, coupled with the lower sales volumes of crude oil and condensates, processed gas and petroleum products.
The company said that its profitability was reduced by lower prices across all products and higher net impairment on assets.
Petronas' LNG sales volumes fell 9% to 7.35 million t as compared to the corresponding period of last year. This was attributed to lower production from the Petronas LNG complex in Bintulu, Sarawak.
The company added that it expects its performance to be affected by the current volatility of oil prices and the foreign exchange rate. A statement from the company concluded that it will “continue with its cost rationalisation efforts to remain competitive while pursuing efforts to drive operational efficiencies and effective delivery of growth projects that bring value.”
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/19052016/petronas-profits-drop-60-percent-4157/