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Malaysia's Petronas Q4 profit falls, flags market unpredictability in 2024

Malaysia's state energy company Petroliam Nasional (Petronas) << IPOPETO.KL > said on Friday it expects oil and gas markets to face continued unpredictabilities this year, as it reported a drop in fourth quarter profit due to lower energy prices.

The disputes in Ukraine and Gaza have actually caused heightened supply threats, while slowing international growth has actually hindered need, Petronas President Tengku Muhammad Taufik Tengku Aziz said.

In spite of this unpredictable background, which shows no indication of subsiding or declining, Petronas remains resolute in its commitments to firstly monetise resources properly for financial growth, Muhammad Taufik stated in an interview.

Petronas posted an earnings of 16.6 billion ringgit ($ 3.5. billion) in October-December 2023, below 24.4 billion. ringgit in the exact same quarter the previous year.

Earnings in the quarter fell 12% to 91.7 billion ringgit, due. to lower average understood costs for all products in line with. decreasing benchmark costs, Petronas stated.

For 2023, it recorded profits of 343.6 billion ringgit,. while profit after tax was at 80.7 billion ringgit.

Petronas will double down on decarbonisation efforts as it. seeks to expand beyond its core upstream, downstream, and. melted gas (LNG) organizations, including in tidy. energy services, renewables and hydrogen tasks, Muhammad. Taufik stated.

We invite increased openness of our operations given. the heightened pressure for sustainability related disclosures,. he stated.

Petronas is on track to meet its near-term target of capping. emissions at 49.5 million lots of CO2 equivalent by 2024 in its. domestic operations, and is making progress towards. commissioning its LNG plant in Canada, he added.

Like other oil majors, Petronas is increase financial investments in. clean energy as part of its net no carbon emissions objectives.

It has stated it will designate 20% of its general capital. expense for decarbonisation tasks and cleaner energy. services from 2023 to 2026.

(source: Reuters)