By DayakDaily Team
KUCHING, Aug 29: PETRONAS recorded a Profit After Tax (PAT) of RM26.2 billion for the first half of financial year 2025 (1H2025), down 19 per cent from RM32.4 billion a year earlier, as revenue fell to RM132.6 billion from RM173.6 billion in the corresponding period.
In a press statement, it explained that the decline in its performance was primarily due to the divestment in its South African unit Engen Group, unfavourable foreign exchange as well as lower average realised prices from petroleum products, crude oil and condensates following the downward trend in benchmark prices.
It expected oil prices to remain subdued due to persistent geopolitical tensions, macroeconomic uncertainties, evolving regulatory landscapes and accelerated unwinding of OPEC+’s production cuts which it said, would continue to reshape global energy dynamics and trade flows.
In navigating the complex global market and operational challenges, the group said it is undergoing a strategic transformation with focus on portfolio high-grading and strategic partnerships, as well as enhanced productivity and cost efficiency.
PETRONAS president and group CEO, Tan Sri Tengku Muhammad Taufik commented: “PETRONAS remains unwavering in our commitment to strengthen our business and portfolio resilience for long-term growth amid an increasingly challenging macro environment in the first half of 2025.
“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.
“As the industry contends with rising costs and declining benchmark prices putting downward pressure on margins, PETRONAS will double down on our efforts in commercial and operational excellence, portfolio high-grading through strategic partnerships, and disciplined financial stewardship. These measures are intended to put PETRONAS in a position to further enhance efficiency and build a strong foundation for future growth.”
Meanwhile, the group’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) was at RM54.4 billion, lower by 15 per cent in line with lower profits.
Its Cash Flows from Operating Activities (CFFO) stood at RM48.1 billion, a decline by RM6.7 billion, primarily driven by lower EBITDA and partially negated by taxes paid.
Total assets increased to RM780.7 billion as at 30 June 2025 against RM766.7 billion as at December 31, 2024, mainly due to net proceeds from the issuance of notes in the US dollar bond market.
Shareholders’ equity was RM437.1 billion, lower by RM14.1 billion, mainly reflecting dividends declared to shareholders and foreign exchange movements, partially offset by profits during the period. – DayakDaily
