Petronas’ profit soars on higher prices

Malaysian energy giant Petronas reported a significant jump in profit for the first six months of 2017 boosted by higher average realized prices. 

The company’s profit after tax rose over 100 percent from 6.4 billion Malaysian ringgit ($1.5 billion) to 17.3 billion Malaysian ringgit ($4 billion) during the period under reviews.

The increase was, however, partially offset by higher amortization of oil and gas properties, tax expenses, net foreign exchange losses and costs related to the non-final investment decision for the Pacific NorthWest LNG project in Canada, Petronas said.

Results also improved during the second quarter with Petronas reporting a profit after tax of 7 billion Malaysian ringgit, compared to 1.7 billion Malaysian ringgit in the corresponding quarter last year.

LNG sales recorded a 2 percent increase in volume to 14.69 million tons compared to 14.37 million tons in the corresponding period last year, mainly attributable to the higher volume from Train 9 and Egyptian LNG.

In addition, the PFLNG Satu has delivered two cargoes to India and Taiwan, respectively.

During the second quarter, LNG sales volume rose to 7.19 million tons, compared to 7.02 million tons in Q2 2016.

GAs sales volume in Malaysia dropped 3 and 1 percent for the second quarter and the first six months of 2017, respectively, mainly due to lower demand, Petronas said.

Going forward, the company also noted it remains cautious as the industry remains volatile, despite higher prices compared to a year ago.

Despite the decision not to proceed with the PNW LNG project, Petronas said it is committed to monetise the natural gas resources in the North Montney area in Canada. At 22.3 trillion cubic feet of proven resources, Canada holds the second largest gas resources in the company’s portfolio after Malaysia.

1 MYR = 0.233912 USD

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