Petronas 2018 LNG sales decline, profit up on higher prices

Malaysian energy giant Petronas reported lower liquefied natural gas sales drop for the quarter and the full year 2018. 

Total LNG sales volume for the fourth quarter of 2018 was lower by 0.66 million tons compared to the corresponding quarter in 2017.

The decline from 8.81 million tons in the fourth quarter of 2017 to 8.15 million tons in the quarter under review has been attributed to the lower volumes from Petronas LNG complex and trading activities.

For the year 2018, Petronas reported a total LNG sales drop of 1.78 million tons from 30.72 million tons in 2017 to 28.94 million tons in 2018.

The energy company’s revenue for the quarter reached 44.8 billion Malaysian ringgit ($10.9 billion) rising from 36.9 billion Malaysian ringgit in Q4 2017.

The 2018 revenue reached 156.6 billion Malaysian ringgit ($38.2 billion) compared to 135.2 billion Malaysian ringgit in 2017. The increases were attributed to higher average realized prices for all products.

Profit after tax rose for the year 2018, with the full-year profit reaching 55.3 billion Malaysian ringgit ($13.5 billion), 22 percent up on 45.5 billion in 2017.

The was due to higher revenue coupled with the net write-back of impairment on assets and non-FID costs for Pacific NorthWest LNG project in Canada.

Quarterly profit after tax stood at 14.3 billion Malaysian ringgit ($3.5 billion), 21 percent below the 18.2 billion Malaysian ringgit in the corresponding quarter of 2017.

Commenting on the company’s outlook, Wan Zulkiflee Wan Ariffin, president and Petronas CEO, said, “The oil price is expected to remain volatile in 2019, and uncertainty in various fronts will have a significant impact on prices. For the year ahead, we will remain focused on driving high performance, efficiency and operational excellence and continue to deliver value to our stakeholders and ensure PETRONAS’ long-term sustainability.”