Petronas 2016 Profit Up 12%

Malaysian Petronas 2016 profit grew 12% despite low oil and gas prices. The company said this was achieved due to cost optimisation and improved efficiency.

Profit for the year that ended December 31, 2016 stood at Malaysian ringgit (MYR) 23.5bn ($5.28bn) compared with MYR 20.9bn recorded in 2015. This was mainly due to lower operating expenditures and tax expenses partially offset by lower average prices, Petronas said March 14. Revenue for the year dipped 17% to MYR 204.9bn from MYR 247.7bn in 2015 because of lower average oil and gas prices and lower sales volume.

Capital investments for the year were reduced by 22% to MYR 50.4bn following project deferment and rephasing as well as cost optimisation efforts, the company said.

Meanwhile for 4Q, company’s profit saw 85% surge to MYR 11.3bn from MYR 6.1bn recorded in the previous quarter. The increase was primarily driven by higher average realised product prices and sales volume mainly from LNG and processed gas as well as impact of favourable exchange rate partially offset by higher taxation.

Revenue in 4Q rose by 20% to MYR 58.6bn from MYR 48.7bn in the preceding quarter.

Shardul Sharma