Petronas reports 29% drop in profit in Q2

Malaysian energy giant Petronas on August 30 announced a 29% year/year decline in profit for the second quarter of 2023, attributing the downturn to lower oil prices.

The company's profit for the April-June quarter stood at 16.4bn ringgit ($3.53bn), marking a drop from 23bn ringgit reported during the same period last year. Additionally, revenue registered a 13.4% year/year decline, amounting to 79.9bn ringgit.

Petronas said that the oil and gas prices are expected to be volatile througout the remainder of the year, largely influenced by ongoing economic challenges and concerns about energy security.

“Looking ahead, we expect to face increasingly difficult headwinds, including a bearish energy market for the rest of the year on the back of slowing global economic activity,” Petronas CEO Tengku Muhammad Taufik Tengku Aziz said.

“Despite near term challenges, we will continue to focus on future-proofing the organisation for the long term. This will mean scaling up investments in our core business, even as we lower emissions while investing in cleaner energy to ensure the robustness of the group’s portfolio, aligned to our energy transition strategy,” he added.