Aug 27, 2011

Malaysia's Petronas Profit Surges But Outlook Weak


Malaysian state energy firm Petronas said Friday its net profit surged nearly 50 percent in the latest quarter on higher oil prices but warned the weak global economy could hit full-year profits.
Profit at Malaysia's biggest company in the three months to June 30, the first quarter of the country's financial year, grew 48.6 percent from the same period a year-earlier to 21.7 billion ringgit ($7.27 billion).

"In a nutshell, the first quarter was quite a good run for Petronas," chief executive Shamsul Azhar Abbas told reporters at a press conference.
Shamsul said the firm was helped by an average price per barrel of oil of $122.26 in the quarter compared to $76.14 in the January-March period, citing the "turmoil in the Middle East and North Africa" for the strong prices.
Revenue rose 24.6 percent to 73 billion ringgit.
But Shamsul warned the outlook for the rest of the financial year was challenging because of the weak global economy.
"Based on our July numbers, we are definitely going towards a slowdown. We had a good run (in the first quarter) and I think the party is over.
"We are moving into a slowdown and I think this will continue into next year."
He said demand will be hurt by near-stagnant economic growth in the United States -- the world's largest oil consumer -- and the possible resumption in the coming months of oil supplies from Libya, where rebels appear close to overthrowing longtime ruler Moamer Kadhafi after a six-month civil war.
"The main worry is the destruction in demand," Shamsul said.
Oil prices would hover around $80 to $85 per barrel in 2012, he predicted.
Oil was mixed in muted Asian trade Friday. New York's main contract, West Texas Intermediate (WTI) for October delivery eased 34 cents to $84.96 a barrel in the afternoon and Brent North Sea crude for October rose eight cents to $110.70.
Shamsul said he expected profit from April to December to range between 60 billion ringgit and 70 billion ringgit. Petronas posted a 60 billion ringgit net profit in the same period last year.
Petronas -- Malaysia's only Fortune 500 company -- contributes almost half the country's budget revenues. It will end its accounting period in December 2011 to allow its new financial year to start in January 2012.
Shamsul said going forward Petronas was keen to invest in Canada and Australia.

Source : AFP

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