Petronas 2018 Profit Up 22%

Malaysian state-owned Petronas March 8 reported a 22% year-on-year increase in profit for 2018 thanks to higher product prices.

Its net profit stood at ringgit 55.3bn ($13.5bn) last year compared with ringgit 45.5bn in 2017. Revenue for the year was ringgit 252bn, up 12% year-on-year.  

During the three months to December 31 (4Q2018), however, company’s net profit dropped 21% year-on-year to ringgit 14.2bn owing to higher product costs, depreciation and amortisation, Petronas said.

Talking about the outlook this year, Petronas aid that the oil and gas industry would continue to operate in a challenging environment arising from market uncertainties and geopolitical risks.

“The oil price is expected to remain volatile in 2019, and uncertainty in various fronts will have a significant impact on prices. For the year ahead, we will remain focused on driving high performance, efficiency and operational excellence and continue to deliver value to our stakeholders and ensure Petronas’ long-term sustainability,” CEO Tan Sri Wan Zulkiflee Wan Ariffin said.

“Looking beyond the horizon, many external challenges will require us to remain agile and continue with our efforts to strengthen our organisation.”