Malaysia's Petronas announces a'strategic transform' after H1 profits fall
Petroliam Nasional Bhd, the Malaysian state-owned energy company (Petronas), announced on Friday it had undergone a "strategic transform" to address operational challenges following lower profits and revenue for the first six months of the year.
Petronas reported a profit of 26.2 billion ringgits ($6.2 billion) for the six-month period ending June 30. This is down from the 32.4 billions ringgits in the same period last year.
The company blamed discontinued operations, unfavourable exchange rates and lower average realized prices in line with falling benchmarks.
The first-half revenue fell by 24%, to 132.6 billion Ringgit. This compares with the revised figure of 173.6 ringgit from a year ago.
Petronas stated in a press release that they expect oil prices to stay subdued because of persistent geopolitical tensions and macroeconomic uncertainty, changing regulatory landscapes, as well as the unwinding OPEC+ production cuts.
The company stated that its "strategic transform" would focus on "portfolio enhancement and strategic partnerships as well as enhanced productivity and cost efficiency".
Tengku Muhammad Tafik, Petronas chief executive officer, said: "Despite the increasingly difficult conditions we face, Petronas remains committed to delivering value to its shareholders and stakeholders and to contributing to a robust energy system that is secure and reliable for a future of sustainability."
The upstream business of the firm reported a loss after tax of 16.5 billion ringgit for the first half of this year. This is down from the 21.4 billion-ringgit profit in the same period of last year.
The downstream segment suffered a loss of 900 millions ringgit.
Capital investments totaled 17.7 billion Ringgit, mostly in the upstream development and manufacturing activities.
Petronas reported an increase of 1.5% in carbon emissions during the first half 2025. However, it said that they were committed to improving their management of emissions.
(source: Reuters)
