Petronas profits fall 47pct in second quarter
KINIBIZ State petroleum corporation Petroliam Nasional (Petronas) posted a steep fall in second-quarter earnings today amid expectations that it will have to tap into cash reserves to meet commitments.
At a briefing today, Petronas posted RM11.1 billion in profit after tax for the second quarter of 2015 (2Q15), down 47 percent year-on-year (y-o-y), as revenue for the quarter fell 28% y-o-y to RM61.3 billion.
While the weaker performance is largely due to lower liquefied natural gas (LNG) volumes and prices, Petronas said the dragdown was offset by higher Brent crude prices, stronger refining margins, and better operational efficiencies.
Brent crude prices showed a net increase in the second quarter, rising to US$63.59 per barrel by June 30 compared to US$55.11 per barrel on March 31. However, the low oil price environment is likely to remain in the near future, it said.
“I do not expect our cash flow from operations this year to meet our capital expenditure and dividend commitments.
“This means we will have to persevere through with more austerity measures and will have to draw on our cash reserves,” said Petronas chief executive officer Wan Zulkiflee Wan Ariffin.
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