Petronas profit jumps on higher LNG sales

Malaysian energy giant Petronas reported rising liquefied natural gas (LNG) sales in the first quarter of 2019. 

Total LNG sales volume for the quarter was at 8.45 million tonnes, above the 7.92 million tonnes in the corresponding quarter last year.

The rise was mainly attributable to a higher volume from the Petronas LNG complex in Bintulu, Sarawak, and higher trading activities, the company said in its report.

First quarter revenue reached 62 billion Malaysian ringgit ($14.8 billion), an increase of 7 percent from 57.9 billion Malaysian ringgit ($13.8 billion) in the corresponding quarter last year.

The revenue was driven by higher sales volume for petroleum products and LNG, coupled with the effect of the weakening ringgit against the US dollar exchange rate. These were partially offset by lower average realized prices, mainly for petroleum products, crude oil and condensates.

First-quarter profit after tax (PAT) stood at 14.2 billion Malaysian ringgit ($3.9 billion), up by 9 percent on the back of higher revenue, but partially offset by increased net product and production costs, lower net write-back of assets impairment and higher contribution to the National Trust Fund, the report says.

Looking ahead, the company expects oil and gas industry to continue operating in a challenging environment arising from market uncertainties and geopolitical risks. Petronas expects to see the negative effects of the rising volatility of oil price and foreign exchange movement on its overall year-end performance.