Petronas 1Q Profit More Than Doubles

Malaysian Petronas has reported a sharp 124% rise in 1Q profit driven by higher average realised prices and lower net impairment on assets.

Company’s profit for the quarter was ringgit 10.3bn ($2.4bn) compared with ringgit 4.6bn a year ago, Petronas said June 2. Revenue grew by 25% to ringgit 61.6bn, from ringgit 49.1bn in 1Q2016.  The increase was due to higher average realised prices recorded across all products, exchange rate impact and higher processed gas sales volumes.  This was partially offset by lower crude oil and condensate and petroleum product sales volume. 

The Malaysian state-owned firm said it continues to maintain a conservative outlook for the remainder of 2017 despite the positive results as supply and demand balances are still slow to return to a sustained equilibrium.  It will focus on its group-wide efforts to optimise costs, further improve efficiency and operational excellence through strategic collaborations within the industry.

Shardul Sharma