Petronas posts 8% growth in Q2 profit on weak ringgit

20 Sep 2019 / 14:01 H.

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) saw its net profit climb 8% in the second quarter of the year to RM14.7 billion from RM13.6 billion reported in the corresponding quarter of the previous year on the back of a weakening ringgit against the US dollar, partially offset by a higher product cost.

Revenue for the period remained flat at RM59.1 billion compared to RM59.2 billion registered previously.

However, it expects to declare a lower dividend for 2020 against RM54 billion this year.

The oil major’s first-half net profit grew 9% to RM28.9 billion from RM26.6 billion a year ago, while revenue rose 3.3% to RM121.1 billion from RM117.2 billion.

“Petronas continues to deliver a healthy financial performance for the first half of 2019, despite persistent challenging market conditions,” said its president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin (pix) at a media briefing on the group’s 1H19 financial results today.

Commenting on the recent drone attack on the Saudi oil production facilities, he opined that the supply shock from the incident is temporary.

In the aftermath of the attack, Brent oil price shot up by 20% to hit US$69 per barrel.

“However, this morning the Brent crude price has gone back down to US$64 per barrel. We think it’s a well supplied market but the demand side is constrained by trade tension between the US and China,” he said.

For next year, Petronas estimates the oil price to hover around the US$55 per barrel range.

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