Malaysian state-owned oil and gas giant Petronas recorded an unprecedented RM16.5 billion (US$4 billion) loss for the first half of 2020, reflecting the uncertainties faced by the oil and gas industry due to the COVID-19 pandemic.
President and group chief executive officer Tengku Muhammad Taufik Tengku Aziz said, “Petronas has endured a very challenging first half of the year, and we expect our performance to be affected by the volatility of oil prices which continues to be exacerbated by the uncertainties brought about by the ongoing COVID-19 pandemic. We are committed to undertake all necessary measures in our path to recovery which will involve reshaping our portfolio mix, retooling our human capital equation and emphasising on focused execution with pace.”
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 percent 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 December 31, 2019, primarily due to net impairment loss on assets.