Malaysia’s Petronas raises Q1 profit to RM23.8 billion, sees moderating oil and gas price

MALAYSIA’S state oil firm Petronas, or Petroliam Nasional Berhad, on Wednesday (Jun 7) logged a first-quarter profit and said it anticipates moderating oil and gas prices to squeeze its profitability this year.

Its post-tax profit during the three-month period rose to RM23.8 billion (S$7 billion), compared with profit of RM23.4 billion in the same quarter a year ago.

Revenue rose to RM90.4 billion (S$26.5 billion) compared with RM78.2 billion in the same quarter last year, but dropped 15 per cent from the fourth quarter of 2022.

Petronas said the better revenue performance was due to improved sales volumes and favourable impact from foreign exchange, although it was offset by lower average realised prices from major products.

“Oil and gas prices are expected to moderate due to continued economic uncertainties, hence lower profitability is anticipated compared to last year,” the firm said.

Capital investments amounted to RM10.5 billion, contributed by upstream and gas projects, it said.

Domestic capital expenditure was up by 44 per cent from the same period last year, mainly for its floating liquefied natural gas (LNG) project in Sabah state and the Kasawari gas field development in Sarawak state, it said.

“Given the risk of continued uncertainty and volatility in the business environment, Petronas will maintain a cautious outlook for 2023,” it added. REUTERS