Petronas H1 earnings down 72% to RM6.2b

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) recorded profit after tax of RM6.2bil for the half year ended June 30, 2016, a 72% fall from a year ago.

The national oil company said on Monday the steep decline was a result of the low oil price environment, further impacted by lower sales volume of crude oil and condensate, processed gas and petroleum products.

It said the decline was, however, partially offset by lower product and production costs.

(Note that in the chart above, the profit after tax figures exclude identified items that mainly comprise net impairment on assets.)

The group recorded revenue of RM97.6bil for the period, which was 23% lower than a year ago.

Group president and group chief executive officer, Datuk Wan Zulkiflee Wan Ariffin told a media briefing the group continues to be hit by volatile oil prices, coupled with oversupply and lagging demand growth.

Quarter on quarter, however, the group recorded RM17.7bil in earnings before interest, tax, depreciation and amortisation (Ebitda) in Q2, a 14% increase from the first quarter this year.

Its cash flows from operating activities also improved by 64%.

"The combined factors of oversupply, growing inventories and slower demand growth point to an ongoing gloomy outlook well into 2017.

“We should expect to see volatility continue and Petronas will not bank on optimistic oil prices  to ease up on pressure,” he said. 

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