KUALA LUMPUR (Sept 5): Petroliam Nasional Bhd’s (Petronas) profit after tax (PAT) for the first half of the year ended June 30, 2024 (1HFY2024) fell 19.4% to RM32.4 billion from RM40.2 billion in the same period the previous year, dragged by its gas and downstream segments.

This was despite a slight increase in revenue of 1.6% to RM171.7 billion from RM169 billion in 1HFY2023, mainly due to the impact from foreign exchange, which was partially offset by lower average realised prices, especially for liquefied natural gas (LNG) in tandem with declining benchmark prices.

Average LNG prices were noted to have been down by 45% during the period, due to weak demand.

Its gas segment’s PAT almost halved to RM8.6 billion against RM16.2 billion in the same period in 2023, primarily dragged down by higher taxation and product costs, while revenue stayed relatively flat at RM58.68 million.  

Meanwhile, Petronas' downstream segment reported PAT of RM832 million, less than half of the RM1.92 billion recorded in 1HFY2023, mainly due to the impact of deconsolidation of subsidiaries, partially offset by higher petroleum product margins. The segment’s revenue dropped 6.1% to RM86.27 billion from RM91.87 billion in 1HFY2023.  

The national oil firm did not reveal its quarterly financial figures for 2QFY2024. 

In 1QFY2024, Petronas’ net profit shrunk 29% to RM16.4 billion, compared with RM23 billion in the previous year’s corresponding quarter, as revenue fell 13% to RM79.9 billion from RM92.3 billion.

“As we cross the 50-year mark, Petronas remains unwavering in its duty as a national oil company to deliver long-term sustainable value for Malaysia’s economic growth,” Petronas president and group chief executive officer Tan Sri Tengku Muhammad Taufik said in a press release.

“The group's priorities remain centred on ensuring energy security and fostering continued collaboration with stakeholders to safeguard the nation's interests and support nation-building efforts,” he added.

Petronas’ upstream segment reported a year-on-year increase, partially offsetting the fall in PAT in its gas and downstream segments. 

The upstream segment was supported by higher natural gas and crude oil and condensates sales volume, uplifting revenue by 9.5% to RM75.39 billion from RM68.89 billion in 1HFY2023. In line with the higher revenue, PAT for Petronas' upstream segment grew 13% to RM21.42 billion from RM18.95 billion. 

Besides that, in 1HFY2024, Petronas achieved first hydrocarbon production for five projects in Malaysia and two in South Sudan, final investment decisions (FIDs) for 12 projects, amounting to seven in Malaysia and five outside Malaysia, as well as one exploration discovery in Suriname. 

Looking ahead, Petronas sees the prolonged geopolitical tensions and macroeconomic uncertainties remaining as key drivers of heightened volatility that continue to negatively impact the global market. 

“Amid the complexities of this challenging and dynamic landscape, Petronas remains agile in recognising and prioritising opportunities for growth,” Taufik said. 

“The group is committed to preserving value through cost rationalisation and value-focused investments, both domestically and internationally. Notably, it remains progressive in monetising upstream resources while advancing efforts in the renewable energy space,” he added.