Business

Petronas pre-tax profit falls by 38% in Q1

The national oil corporation is paying a dividend of RM26 billion to the Malaysian government this year compared to RM29 billion last year.

Syndicated News
Written by Syndicated News

KUALA LUMPUR — May 22, 2015: The pre-tax profit of Petroliam Nasional Berhad (Petronas) fell by 38 per cent lower to RM16.95 billion for the first quarter ended March 31 compared to the same quarter last year.

Revenue was 21 per cent lower at RM66.19 billion from RM84.05 billion.

The national oil company’s president and group chief executive Datuk Wan Zulkiflee Wan Ariffin attributed the weaker performance to low average realised prices across all products and lower crude oil prices.

“However, the quarter’s performance was partly offset by higher sales volume of crude oil and LNG.

“The favourable movement of the US dollar exchange rate against the ringgit also cushioned the quarter’s performance,” he told reporters here today.

Moving forward, Wan Zulkiflee said Petronas would continue its cost-saving exercise by optimising value through renegotiating upstream contracts and better internal efficiency, amid the current low oil price.

He said that in the past few months, Petronas had managed to save about RM200 million.

As of the first quarter, the total assets of Petronas stood at RM563.1 billion, 5.0 per cent higher than the fourth quarter ended last December 31.

Total production of crude oil and condensates as well as gas for the quarter under review was 5.0 per cent higher at 2,365 kilo barrels of oil equivalent per day.

On the dividend to the government, Wan Zulkiflee said Petronas is paying RM26 billion this year, RM3 billion less than last year. — Bernama

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