The national oil corporation attributed the weaker performance to lower average realised prices of petroleum products and crude oil, as well as the divestment of its interests in South Africa’s energy group Engen Group Ltd (Engen Group) in May 2024, which had a negative impact on revenue.
Petronas was a major shareholder of Engen until May last year when it completed the sale of its 74% stake to British downstream petroleum company Vivo Energy.
Despite higher sales volumes, the company saw a 7% drop in revenue from RM343.6 billion in FY2023 to RM320 billion in FY2024.
It attributed the decline to weaker oil prices and the exclusion of Engen Group’s financial contributions post-divestment.
For the second half of FY2024, net profit dropped 44% to RM22.7 billion, compared with RM40.5 billion in the same period of FY2023. Revenue for the second half of 2024 fell 16% to RM146.4 billion, down from RM174.6 billion a year earlier.
Petronas’s earnings before interest, tax, depreciation, and amortisation fell 11% to RM114.1 billion, while cash flows from operating activities declined 10% to RM102.5 billion.
However, capital investments rose slightly to RM54.2 billion, largely driven by upstream development projects in Malaysia.
Segmental performance
Revenue in the upstream segment inched back 1% to RM140 billion, as lower average realised prices offset higher natural gas sales volumes. PAT in the same segment declined 12% to RM34.9 billion.
The gas and maritime segment saw a 3% increase in revenue to RM131.1 billion, driven by higher liquefied natural gas (LNG) and processed gas sales volumes. However, PAT fell 38% to RM19.9 billion, primarily due to higher taxation and net impairment losses on assets.
The downstream segment saw revenue falling 17% to RM153.9 billion, mainly due to the impact of the Engen Group divestment and lower product prices.
Future outlook
President and group CEO Tengku Muhammad Taufik Aziz said the company remains committed to long-term resilience and financial discipline despite market challenges.
“As the industry faces geopolitical uncertainties, regulatory changes, and volatile energy prices, Petronas will continue to focus on portfolio diversification, cost rationalisation, and strategic partnerships to ensure sustainable growth,” he said.
The group said it is dedicated to supporting the nation’s energy security and economic growth, as demonstrated by the progress of the Kasawari Gas Field Development and Petronas Floating LNG 3, and the completion of integrated Bekok Oil projects.
It added that it is also investing in low-carbon energy solutions and specialty chemicals, while expanding its LNG plant in Canada and upstream ventures in Angola and Indonesia as part of its energy transition strategy.