Petronas returns to black with RM11.26b net profit in Q4 2016

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) swung to the black registering a net profit of RM11.26 billion for the fourth quarter (Q4) ended Dec 31, 2016, against a net loss of RM2.96 billion in the previous corresponding period, driven by lower net impairment on assets and production costs.

Revenue, however, contracted 2.5% from RM60.1 billion to RM58.6 billion, due to lower average realised product prices.

Brent crude prices averaged US$49.46 a barrel for Q4 compared with US$45.85 a barrel in Q3.

For the full year of 2016, Petronas' net profit expanded 12.7% from RM20.86 billion to RM23.51 billion on the back of a 17.3% rise in revenue from RM247.66 billion to RM204.91 billion.

Speaking at a press conference today announcing the 2016 results, Petronas president and CEO Datuk Wan Zulkiflee Wan Ariffin said the outlook for the industry remains uncertain while maintaining his projection of US$45 for average oil prices this year.

"I'm not sure the worst is over or not, but we're preparing ourselves for the uncertainties, especially in the second half," he explained.