Malaysian energy giant Petronas reported a rise in its full year and fourth quarter profits despite the low oil prices and a challenging market environment.
The company’s profit after tax reached RM23.5 billion (Approx: US$5.2 billion) for the full year 2016, showing a 12 percent increase.
However, the company’s report shows that the revenue dropped 17 percent to RM204.9 billion from RM247.7 billion in 2015.
The drop was attributed to the downward trend of key benchmark prices coupled with the impact of lower sales volume.
The company’s fourth-quarter profit jumped 85 percent compared to the previous quarter reaching RM11.3 billion. The RM5.2 billion increase was driven by higher average realized product prices and sales volume mainly from LNG and processed gas as well as the impact of favorable exchange rate.
Revenue for the quarter increased 20 percent from RM48.7 billion in the third quarter to RM58.6 billion in the quarter under review.
Petronas also noted that the capital expenditure for the year dropped 22 percent to RM50.4 billion following project deferment and rephasing as well as cost optimization efforts.
Petronas’ LNG sales for the year hit 29.01 million tons, marginally higher compared to 28.49 million tons in 2015 mainly contributed by higher volumes from Train 9 in Bintulu and GLNG in Australia, partially offset by lower trading volume.
Looking ahead, Petronas is maintaining a conservative outlook and expects further price uncertainty through 2017.
1 RM = 0.224742 USD