KUALA LUMPUR (Aug 28): Petroliam Nasional Bhd’s (PETRONAS) earnings lagged behind other major oil companies in the first half of the year, weighed down by losses at its Pengerang Integrated Complex.

PETRONAS’ earnings trailed behind the likes of Chevron that reported record quarterly earnings, Shell its second-highest, while ExxonMobil doubled its earnings from a year earlier.

Its profit after tax (PAT) for the first six months ended June 30, 2026 (1HFY2026) edged up 3.8% to RM27.2 billion from RM26.2 billion, while revenue rose 14.9% to RM152.4 billion from RM132.6 billion, according to the national oil and gas outfit’s statement on Friday.

Topline rose on higher domestic production and higher sales volume of liquefied natural gas (LNG) and processed gas, coupled with favourable average realised prices across major products.

The bottom line growth, however, was partly offset by recognition of accumulated share of losses of Pengerang Refining Company Sdn Bhd and Pengerang Petrochemical Company Sdn Bhd (PRefChem), following the group's additional capital injection.

PRefChem’s losses were previously only at the joint venture level. Its additional capital injection formed part of the group’s transaction to attain full ownership of PRefChem in this financial year.

The quantum of the additional injection was not disclosed, though PETRONAS noted it is included in the group’s overall RM41.4 billion capital expenditure in 1HFY2026, a surge from the RM17.7 billion in the same period a year earlier.

Downstream operations logged a loss after tax of RM15.2 billion. Excluding the previously unrecognised accumulated share of losses of certain joint venture, PAT for the period is RM7.0 billion.

PETRONAS’ downstream operations played a key role during the West Asia conflict in safeguarding Malaysia’s national energy security, the group noted.

PETRONAS president and group CEO Tan Sri Tengku Muhammad Taufik said the group’s priority in the first half of the year was to safeguard energy security, under which it undertook “strategic investments to reinforce our long-term resilience”.

“Despite prevailing challenges, PETRONAS continued to maintain financial and operational discipline, while strengthening our upstream position, expanding our LNG supply nodes and enhancing our new energy offerings.

“These efforts have contributed to a resilient financial performance in the period under review, which was delivered against a backdrop of prolonged uncertainty and volatility,” Muhammad Taufik said.

Looking ahead, the global energy landscape remains fragile and uncertain amid geopolitical headwinds and the prolonged conflict in West Asia, PETRONAS noted.

“These conditions continue to influence prices, trade flows and cost structures, creating a challenging operating environment and cost pressures across the value chain,” the group said.

“Despite the challenging environment, PETRONAS is demonstrating its resilience through prudent financial management and a steadfast commitment to advancing its transformation agenda,” it added.

In 1H, PETRONAS paid RM8 billion to the government, partial payment of the approved RM20 billion dividend for 2026.