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Malaysia's Petronas Q1 profit dives 60%

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Malaysian state energy firm Petronas Wednesday announced a 60 per cent plunge in first-quarter profit due to slumping world oil prices, casting a cloud over the country's economic prospects.

[KUALA LUMPUR] Malaysian state energy firm Petronas Wednesday announced a 60 per cent plunge in first-quarter profit due to slumping world oil prices, casting a cloud over the country's economic prospects.

Petronas is the single largest source of Malaysian government revenue and of national export earnings.

The unlisted firm, Malaysia's only Fortune 500 company, posted a RM4.6 billion (S$1.56 billion) net profit for the first quarter compared to RM11.4 billion during the same period last year.

Revenue fell by 26 per cent to 49.1 billion.

The firm said in a statement it expects a continued impact from volatile oil prices and the foreign exchange rate.

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In March Petronas announced cuts in capital and operating spending of RM50 billion over the next four years, starting with 15-20 billion this year.

Sinking prices of oil and other commodities have battered Malaysia's growth prospects.

The economy expanded 4.2 per cent year-on-year in January-March, its slowest rate since the global financial crisis.

AFP

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