PETRONAS quarterly profit more than doubles on crude prices

Source: PETRONAS

Malaysia’s state oil company Petroliam Nasional Bhd. said net income in the second quarter more than doubled from a year earlier due to a recovery in global demand and elevated energy prices.

PETRONAS posted profit of 23 billion ringgit ($5.1 billion) in the three months ended June, versus 9.6 billion ringgit a year earlier, the company said in a statement on Tuesday. Revenue climbed 64% to 93.3 billion ringgit. 

The company benefited from a rally in oil prices that’s lifted incomes of global energy giants including Exxon Mobil Corp. Brent surged above $120 a barrel in the April-June period amid disruptions caused by the Russia-Ukraine war but has since retreated. Prices are likely to fall to $90-$95 in the second half as supplies normalize, Petronas’ President and Group CEO Muhammad Taufik said. 

“The eventual cyclicality of this industry will fade back. There will be a correction, which should be starting next year,” he said at a briefing.

As part of its efforts to promote sustainability, he said the group would continue to reinvest toward the decarbonization of its operations and seize new opportunities of growth in this space. Petronas is setting aside up to 20 per cent of its capital expenditure for green project investments over the next five years.

PETRONAS will pay another 25 billion ringgit in dividend to the government, bringing the total payout for 2022 to 50 billion ringgit, Muhammad Taufik said.

© 2022 Bloomberg L.P.

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