Petronas Books Big Loss in Q2

Malaysian state-run Petronas on September 4 reported a loss of ringgit 21bn ($5bn) in the three months to June 30 (Q2) versus a profit of ringgit 14.7bn in the same period of last year.

Petronas said the loss was due to lower average realised prices for all products and lower sales volumes mainly from processed gas and LNG. Revenue during Q2 was ringgit 34bn, lower by 42% yr/yr.

Brent prices continued to slide in Q2, with the dated Brent averaging $29.20/b compared with $68.83/b in the year ago period.

During the six months to June 30 (H1), Petronas booked a loss of ringgit 16.5bn against a profit of ringgit 28.9bn owing to impairment charges. Excluding these charges, the company would have recorded a net profit of ringgit 7.7bn. It recorded revenue of ringgit 93.6bn, a decline of 23% yr/yr.  For H1, the dated Brent average was $39.73/b, compared with $66.02/b in the previous corresponding period.

Total LNG production in H1 decreased by 7% yr/yr to 13.2mn metric tons. Gross LNG sales volumes were 3% lower at 16.7mn mt, Petronas said.

Petronas said that the industry continued to operate in a challenging market environment arising from a combination of demand destruction caused by the Covid-19 pandemic and a global oil market glut. 

Meanwhile, Petronas’ second floating LNG vessel, PFLNG Dua, is currently moored at the Rotan gas field, located 140 km offshore Kota Kinabalu, Sabah, with commissioning work progressing as planned. Once ready for commercial operations, PFLNG Dua will be able to monetise deep-water gas fields in depths of up to 1,500 metres with a production capacity of 1.5mn mt/year, it said.