KUALA LUMPUR: Petroliam Nasional Bhd recorded a 19% decline in net profit to RM26.2 billion for the first half ended June 30, 2025, from RM32.4 billion a year earlier, in tandem with lower revenue.
The national oil company’s revenue for the period fell 24% to RM132.6 billion compared to RM173.6 billion in the corresponding period last year.
Petronas said the weaker revenue for 1H2025 was mainly due to discontinued operations following the divestment of the Engen Group in May 2024, unfavourable foreign exchange, and lower average realised prices from petroleum products, crude oil and condensates, in line with the downtrend in benchmark prices.
Its president and group chief executive officer, Tan Sri Tengku Muhammad Taufik Tengku Aziz, said the group remains unwavering in its commitment to strengthen its business and portfolio resilience for long-term growth amid an increasingly challenging macroeconomic environment in 1H2025.
“Through the focused execution of our energy transition strategy, portfolio optimisation and prudent capital management, we are expediting a critical transformation to continue delivering energy safely, reliably and sustainably to those we serve,” he said in a statement today.
Tengku Muhammad Taufik noted that as the industry contends with rising costs and declining benchmark prices that are putting downward pressure on margins, Petronas would double down on its efforts to drive commercial and operational excellence, pursue portfolio high-grading through strategic partnerships, and maintain disciplined financial stewardship.
“These measures are intended to position Petronas to further enhance efficiency and build a strong foundation for future growth,” he added.
For 1H2025, Petronas recorded earnings before interest, tax, depreciation and amortisation of RM54.4 billion, down 15% in line with lower profits, while cash flows from operating activities stood at RM48.1 billion, a decrease by RM6.7 billion, primarily driven by lower EBITDA and partially negated by taxes paid.
Total assets rose to RM780.7 billion as at June 30, 2025, against RM766.7 billion as at Dec 31, 2024, mainly due to net proceeds from the issuance of notes in the US dollar bond market.
Shareholders’ equity stood at RM437.1 billion, down RM14.1 billion, mainly reflecting dividends declared to shareholders and foreign exchange movements, partially offset by profits during the period.
Moving forward, Petronas expects oil prices to remain subdued due to persistent geopolitical tensions, macroeconomic uncertainties, evolving regulatory landscapes and accelerated unwinding of the Organisation of the Petroleum Exporting Countries and its allies production cuts, which will continue to reshape global energy dynamics and trade flows. – Bernama
