Petronas LNG sales rise, nine-month profit slips

Malaysian energy giant Petronas reported an increase in liquefied natural gas (LNG) over the period of the first nine months of 2019. 

The company reported its total LNG sales volume for the first nine months reached 21.9 million metric tonnes, 5.3 percent up on the 20.8 million metric tonnes reported in the same period last year.

The increase was mainly attributed to higher production volume from Petronas LNG Complex in Bintulu, the company said in its statement.

LNG production for the first nine months of 2019 remained strong with an increment of 9.0 percent at 20.6 million metric tonnes as compared to 18.9 million metric tonnes in the same period in 2018, contributed by higher feed gas supply and better plant performance.

The company that has just named its second floating LNG unit, the PFLNG Dua, informed that its first unit, the PFLNG Satu has loaded seven LNG cargoes after its relocation to the Kababangan gas field in Sabah.

For the period under review, the company reported a 3 percent drop in revenue to 176.2 billion Malaysian Ringgit ($42.2 billion), primarily due to lower average realized prices for major products.

Profit after tax (PAT) for the first nine months of 2019 decreased by 11 percent from the same period in 2018, to 36.4 billion Malaysian Ringgit, mainly due to lower revenue and net impairment predominantly recognized in Petronas’ E&P segment driven by more conservative price outlook, partially offset by lower tax expenses.

Looking forward,  Petronas said that the outlook for the industry remains challenging. This is driven by the slowing global economy, geopolitical tensions and ongoing global trade issues, resulting in demand disruption. The company expects the overall year-end performance to be affected by these factors.