Petronas president and CEO Datuk Wan Zulkiflee Wan Ariffin

Petronas revenue down, profit up in 2016

KUALA LUMPUR, March 14, 2017 – Malaysia’s state giant Petronas published its interim Q4 and FY results on Tuesday, noting a 12% year-on-year growth in profit after tax despite revenues that were some 17% lower.

Petronas recorded some MYR 205 billion (USD 46 billion) in revenues and MYR 23.5 billion (USD 5.28 billion) in profit after tax last year, citing cost cuts and lower taxes paid as key factors offsetting the impact of low oil and gas prices on its performance.

Earnings before interest, tax, depreciation and amortization (EBITDA) came out at MYR 70.4 billion (USD 15.8 billion), down from MYR 75.5 billion (USD 17 billion) in 2015.

“I am encouraged that Petronas has emerged from 2016 as a more resilient Corporation with strong underlying performance driven by our new structure, significant cost reductions and improved performance,” President and CEO Datuk Wan Zulkiflee Wan Ariffin said in a statement. “We are in a stronger position heading into 2017.”

In an effort to cut expenses, capital investments were reduced some 22% last year, while “controllable costs” were cut by 8%, Petronas added. This contributed to a profit after tax of MYR 11.3 billion (USD 2.54 billion) in Q4, up from a loss of MYR 3 billion (USD 674 million) in Q4 of 2015.

Nevertheless, the firm remains cautious about projections for 2017, budgeting for an average oil price of USD 45 per barrel.

“The Group continues to maintain a conservative outlook for 2017 and expects prices to remain uncertain,” the company statement added.

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