Malaysia’s national oil company Petronas saw an increase in profit during the second quarter 2017 helped by higher prices across all products and cost cuts.
Petronas’ profit after tax for the quarter was RM 7 billion compared to RM 1.7 billion in 2Q of 2016, a significant improvement mainly due to lower net impairment on assets and well costs, coupled with higher average realized prices recorded across all products.
This was partially offset by higher net foreign exchange losses, amortization of oil and gas properties and non-FID costs for PNW LNG in Canada, the company said.
The profit was posted on the back of a RM 51.6 billion revenue, a 10 percent increase from RM 46.9 billion from the corresponding quarter last year as a result of higher average realized prices and foreign exchange rate impact.
However, the company said, despite higher prices compared to a year ago, the industry remains volatile tempering the company’s optimism.
Datuk Wan Zulkiflee Wan Ariffin, President and Group CEO Petronas, said: “We have closed out the first half of the year with stronger financials compared to the same period in 2016. While the price of oil was a significant factor, I also view this as tangible results of Petronas’ transformation measures taken in response to the industry downturn.”
Crude oil, condensate and natural gas entitlement volume for the second quarter of 2017 was 1,706 thousand barrels of oil equivalent (boe) per day compared to 1,648 thousand boe per day. The increase was in line with higher gas production. Total production volume was 2,297 thousand boe per day compared to 2.329 thousand boe per day in the corresponding quarter last year.
Offshore Energy Today Staff