Petronas 1H Profit Drops 19% to RM32.4 Billion
Malaysian state energy firm Petroliam Nasional Bhd (Petronas) reported a decline in profit for the first half of 2024, with net income dropping by 19% to RM32.4 billion ($7.48 billion) from RM40.2 billion in the same period last year. The decrease was attributed to increased volatility in the global market, higher taxes, and a shrinking asset base. Despite these challenges, Petronas' revenue for the period saw a 2% increase to RM171.7 billion ($39.62 billion), up from RM169 billion in the previous year.
Petronas' CEO, Tengku Muhammad Taufik Tengoku Aziz, emphasized the company's commitment to ensuring energy security for Malaysia. The company's gas segment saw a significant impact, with profit after tax nearly halving to RM8.6 billion due to higher taxation and product costs. In addition, refining margins dropped by 30% year-on-year, and the company is navigating issues such as its exit from South Sudan and Sarawak's efforts to carve out its gas trading rights in Borneo.
Capital investments increased by 18% compared to the same period last year, contributing to the total assets rising to RM798.6 billion as of June 30, 2024. However, the Group's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) decreased by 9% to RM64.1 billion, and cash flows from operating activities decreased by 5% to RM54.8 billion. Despite these financial adjustments, Petronas continues to monitor Brent crude prices, expecting them to range between $70 and $80 in the near future.
