Petronas Reports 19% Profit Decline, RM26.2 Billion 1H25

Malaysia's national oil and gas company, Petronas, reported a 19% decline in profit after tax to RM26.2 billion for the first half of 2025, primarily due to lower average realized prices, unfavorable foreign exchange losses, and the disposal of some operations such as its South African unit. Revenue fell 24% year-on-year to RM132.6 billion, impacted by declining benchmark prices and discontinued operations including the Engen Group divestment. Despite these challenges, Petronas is undergoing a strategic transformation focused on portfolio optimization, strategic partnerships, and improving operational efficiency to strengthen resilience and ensure long-term growth. The company expects oil prices to remain subdued owing to geopolitical tensions, macroeconomic uncertainties, evolving regulations, and the unwinding of OPEC+ production cuts. Capital investments of RM17.7 billion were mainly directed toward upstream development and production activities, while cash flow from operations declined to RM48.1 billion. Petronas also highlighted its commitment to energy transition and sustainability, reinforced by its successful first LNG shipment from the new LNG Canada facility, marking an expansion of its global supply footprint.