KUALA LUMPUR (Reuters) – Malaysian state energy firm Petroliam Nasional Bhd (Petronas) said on Friday that it was undergoing a ‘strategic transformation’ to tackle operational challenges after reporting lower profits and revenues for the first half of the year.
Petronas posted a profit after tax of 26.2 billion ringgit ($6.2 billion) in the six months ending June 30, down 19% from 32.4 billion ringgit in the corresponding period of last year, it said.
The company blamed some discontinued operations, unfavourable foreign exchange moves and lower average realised prices, in line with falling benchmark prices.
Revenues in the first half declined 24% to 132.6 billion ringgit, compared with a revised figure of 173.6 billion ringgit a year earlier.
Petronas said in a statement that it expects oil prices to remain subdued due to persistent geopolitical tensions, macroeconomic uncertainties, evolving regulatory landscapes, and the unwinding of OPEC+’s production cuts.
The company’s “strategic transformation” will focus on “portfolio high-grading and strategic partnerships, as well as enhanced productivity and cost efficiency”, the company said.
“Despite increasingly daunting headwinds, Petronas is firmly committed to continue delivering value to our shareholders and stakeholders as well as contribute to building a robust and secure energy system for a sustainable future,” Petronas’ chief executive officer Tengku Muhammad Taufik said.
The firm’s upstream business reported a profit after tax of 16.5 billion ringgit in the first half of the year, down from 21.4 billion ringgit in the same period last year.
Its gas and maritime business rose to 10.4 billion ringgit, while the downstream segment posted a net loss of 900 million ringgit.
Capital investments amounted to 17.7 billion ringgit, mainly in upstream development and production activities.
Petronas also reported a 1.5% increase in carbon emissions for the first half of 2025, but said it remained committed to improving the way its emissions are managed.
($1 = 4.2050 ringgit)
(Reporting by Rozanna Latiff; Editing by John Mair and David Stanway)
