Revenue Boost Amidst Global Challenges
Petronas, Malaysia’s national oil and gas company, recorded MYR 171.7 billion ($39.4 billion) in revenue during the first half of 2024, an impressive MYR 2.7 billion ($459.5 million) increase from the previous year. Despite lower gas prices, the company managed this growth due to favorable foreign exchange rates and increased production. Petronas’ daily output rose to 2.5 million barrels of oil equivalent per day (MMboed), up from 2.4 MMboed in 2023.
Profit Impacted by Divestments and Taxation
While revenue showed resilience, Petronas’ profit after tax experienced a 19% year-on-year decline, reaching MYR 32.4 billion ($7.4 billion). This drop was attributed to the sale of its 74% stake in Engen Ltd. and increased taxation. The company’s divestments also reduced sales volumes, dropping from 12.81 billion liters in 2023 to 12.35 billion liters in 2024.
Withdrawal from South Sudan and Investment Focus
In August, Petronas announced its exit from South Sudan, where it held stakes in several oil blocks. Despite these challenges, the company invested heavily in upstream development, spending MYR 25.7 billion ($5.9 billion) in capital investments. Petronas’ EBITDA stood at MYR 64.1 billion ($14.7 billion), a 9% year-over-year decrease.
Strategic Outlook for the Future
Petronas continues to navigate a volatile global market, maintaining strong capital discipline and a clear business strategy. As the company pushes forward, it has already declared MYR 32 billion ($7.4 billion) in dividends for the first six months of 2024. Despite a challenging economic landscape, Petronas remains committed to sustainable growth and long-term profitability.
This blog highlights the resilience of Petronas amid global market challenges and serves as an example of strong financial management in the energy sector.