Malaysia's Petronas records slight drop of profit in Q1
Malaysia’s state-owned oil giant, Petronas, announced Wednesday a slight drop in profit in the first quarter of 2013 partly due to higher operation cost and lower oil price.
The company recorded a profit of 20.4 billion ringgit (6.6 billion U.S. dollars) in the first three months of the year, compared with 20.9 billion ringgit (6.8 billion U.S. dollars) for the same period in 2012, “primarily due to lower margins resulting from higher operating and non-operating expenses partially offset by decommissioning adjustment during the quarter,” it said in a statement.
Its first quarter revenue rose slightly to 76.7 billion ringgit (24.9billion U.S. dollars) from 75.3 billion ringgit (24.4 billion U.S. dollars) year-on-year, benefited from “higher trading volume for both crude oil and sales gas on the back of stronger demand from customers coupled with the effect of strengthening of U.S dollar against Ringgit.”
Petronas said its petroleum operations in the South Sudan has resumed in stages since April after 15 months of shut down following post-independence issues between the South Sudan and Sudan.
The company has recently secured a deal with OGX Petroleo e Gas S.A (OGX) to acquire 40 percent of OGX’s interest in two blocks in Brazil’s Campos Basin, for a total consideration of 850 million U.S. dollars.
Petronas’ President and group chief executive officer Shamsul Azhar Abbas said the company is expected to start production in Brazil in the fourth quarter of this year.
However, the company expects the pre-tax profit remain unchanged this year as a declining crude oil prices would offset its increased production.
“The global economic uncertainties are expected to lead to continued volatility in oil prices and global oil demand which may affect Petronas Group’s performance,” Shamsul Azhar told a press conference.