KUALA LUMPUR (Feb 27): Petroliam Nasional Bhd (PETRONAS) saw its net profit for the financial year ended Dec 31, 2025 fall 17.6% to RM45.4 billion from RM55.1 billion a year ago, hit by a sharp drop in oil and petrochemical prices.
The decline in prices, amid a fragile and volatile global economy, dragged full-year revenue by 16.8% to RM266.1 billion from RM320 billion in FY2024.
Also affecting top line was foreign exchange impact and lower sales volume, partly due to the absence of contribution from South Africa-based retailer Engen, which PETRONAS exited in May 2024. Despite these headwinds, the group's profit margin remained resilient, coming in unchanged from FY2024 at 17%.
With the release of the latest financial results, the PETRONAS board approved a dividend of RM20 billion for 2026, in line with government projections under Budget 2026. It paid RM32 billion last year.
For FY2025, PETRONAS allocated RM41.6 billion for capital expenditure, down from RM54.2 billion in FY2024. Close to RM25 billion or 60% of that was funnelled into the Malaysian market. Total assets rose slightly over 1% to RM775 billion, from RM766.7 billion.
“It is not an exaggeration when I say the year was one that truly tested oil companies,” said PETRONAS president and group chief executive officer Tan Sri Tengku Muhammad Taufik during the results briefing on Friday.
Oil prices fell 14% to US$69 (RM268.48) per barrel in 2025 from US$80 per barrel in 2024, on oversupply concerns and a muted demand outlook, while ethylene prices — a key petrochemical product — fell 12% in the same period as supply-demand dynamics remained unfavourable.
A bright spot was the steady demand for liquefied natural gas (LNG), which lifted prices by 7%.
Demand for gas and LNG is expected to remain resilient, Muhammad Taufik said. The group delivered 36.6 million metric tons (MMT) of LNG across 563 cargoes last year — an increase from the 35.7 MMT and 548 cargoes delivered in 2024. This growth was bolstered by the commissioning of two trains at its Canada facility.
While the operating landscape shifts for oil companies, Muhammad Taufik said PETRONAS would continue to pursue all avenues to build resilience across its portfolio and balance sheet, with the aim of creating value for stakeholders while providing energy security affordably, reliably and responsibly.
The group will nonetheless continue its decarbonisation journey as well as new energy ventures, while focusing on projects that provide value accretion, he added.