Petronas Pre-Tax Profit Surges To RM28.1 Billion In Q2 2014

KUALA LUMPUR, Aug 13 (Bernama) -- Petronas' pre-tax profit for the second quarter ended June 30, 2014 rose 28 per cent to RM28.1 billion from RM22 billion in the corresponding period last year on the back of higher revenue.

Its revenue increased 15 per cent to RM85.4 billion from RM74.4 billion previously, driven by improved production, higher gas sales and favourable exchange rate.

Production volume improved following production enhancement efforts and new production streams from Malaysia and Iraq, production resumption in South Sudan and additional production from Canada, Petronas Executive Vice-President and Group Chief Financial Officer Datuk George Ratilal told a media briefing here Wednesday.

For the first half ended June 30, 2014, Petronas' pre-tax profit went up nine per cent to RM55.3 billion from RM50.8 billion in the corresponding period last year.

The revenue advanced 12 per cent to RM169.41 billion from RM151.10 billion previously.

Petronas President and Group Chief Executive Officer Tan Sri Shamsul Azhar Abbas anticipated the second half of the year to be challenging amid robust supply but modest demand growth that could pressure crude oil prices and the company' earning.

He said Petronas could be lucky to record a pre-tax profit of RM94.6 billion for the year 2014 as the current crude oil prices could go down below between US$95 and US$100 per barrel from US$108 per barrel in the first half.

"Things are not going to be easy moving forward. It's getting harder to develop oil and gas, and the cost continues to increase," he said.

Petronas' total assets grew to RM544.1 billion as at June 30, 2014 from Dec 31, 2014's RM528.7 billion.

Its capital investment to date amounted to RM26.3 billion, of which 64 per cent at home while 36 per cent overseas.

On Petronas' international operations, Shamsul said the company aimed at growing its net profit contribution to 20 per cent from 11 per cent in the next five years.

He also announced that the Chinese government on July 17 approved its state-owned, Sinopec-Huadian joint venture to acquire a 15 per cent stake in Petronas' integrated LNG export facility in Canada.

The joint venture became Petronas' fourth strategic partner in the project, apart from Japex Montney Ltd (10 per cent), Brunei Petroleum (three per cent) and Indian Oil Corp Ltd (10 per cent).

Currently, Petronas, which holds a 62 per cent stake in the project, is in negotiations with three or four partners from Japan and West Asia but not in a hurry to pare down its stakes.

Shamsul said Petronas' operations in Russia continued unabated despite economic sanctions on Russia and US military operations in Iraq to flush out insurgents.

On the refinery and petrochemical integrated development in Johor, Shamsul said Petronas has awarded 11 contracts worth RM30 billion, mainly for infrastructure development.