Petronas' 2019 Profit Drops 27%

Malaysian state-run Petronas February 26 reported a 27% drop in net profits for the 12 months up to December 31.

Net profit stood at ringgit 40.5bn ($9.6bn) against ringgit 55.3bn posted in the previous year. This was primarily due to a 4% decline in revenues to ringgit 240.3bn, and ringgit 7.3bn of impairment charges on assets.

For the three months ending December 31 (Q4), Petronas recorded ringgit 64bn in revenues, down 8% compared with the ringgit 69.9bn it generated in the same quarter of 2018, mainly due to lower average realised prices for its main products. Net profit in Q4 stood at ringgit 4.1bn, down 71% from ringgit 14.3bn in Q4 2018, because of impairments and lower revenues, partially offset by lower tax expenses, Petronas said.

The company has projected a bearish outlook for the oil and gas industry given ongoing geopolitical uncertainties, prolonged trade tensions and near-term demand disruptions due to the COVID-19 outbreak.