Petronas books unprecedented RM21b loss in Q2 2020 after impairment

Workers work on a signage bearing a Petronas logo in Kuala Lumpur March 12, 2017. — Picture by Yusof Mat Isa
Workers work on a signage bearing a Petronas logo in Kuala Lumpur March 12, 2017. — Picture by Yusof Mat Isa

KUALA LUMPUR, Sept 4 ― Petroliam Nasional Bhd (Petronas) recorded a lower financial performance for the first half of 2020, reflecting the uncertainties faced by the oil and gas industry due to the Covid-19 pandemic, but the group aims to strengthen its resilience by deploying a three-pronged growth strategy.

President and group chief executive officer Tengku Muhammad Taufik Tengku Aziz said the group is committed to undertaking all necessary measures in its path to recovery which would involve reshaping its portfolio mix, retooling human capital equation and emphasising on focused execution with pace.

He noted that the three-pronged growth strategies would provide screenshots to the group.

“On reshaping our portfolio mix, the group-wide exercise high grading of the portfolio to balance between sustainability and ensuring high-value returns to come,” he said when presenting the group’s financial performance for the first half year ended June 30, 2020.

For the first half of 2020, Petronas experienced a loss after tax of RM16.5 billion for the period against a net profit of RM28.9 billion year-on-year following lower revenue and impairment loss. Excluding impairment loss, the group would record a net profit of RM7.7 billion.

The national oil company also recorded revenue of RM93.6 billion, a decline of 23 per cent from RM121.1 billion year-on-year, largely driven by lower average realised prices for all products and lower sales volume, mainly from processed gas and liquefied natural gas (LNG).

Total assets decreased to RM613 billion as at June 30, 2020 compared to RM622.4 billion as at Dec 31, 2019, primarily due to net impairment loss on assets.

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