Profit plunges for Malaysia’s Petronas on low oil prices

AFP, KUALA LUMPUR:  Malaysia’s state energy firm Petronas said yesterday  profits plunged 85 per cent  in the second quarter due to low oil prices, adding to concerns about the country’s slowing economy.
Petronas, Malaysia’s only Fortune 500 company and the largest source of government revenue and national export earnings, reported a net profit of 1.62 billion ringgit ($402 million) for the period, down from 11.07 billion last year.
Revenue was 48.44 billion ringgit, 21 per cent lower than the same period in 2015.
The firm said it expects to be impacted by “volatility in oil prices” for the rest of the year.
“Despite a modest recovery in crude oil prices, uncertainties remain due to persistent oversupply and sluggish demand outlook,” it said in a statement.
Energy-exporting Malaysia has the third-largest economy in Southeast Asia, but has been grappling with falling oil prices and weak overseas demand—denting revenues and putting severe pressure on the ringgit.
The country has also been rocked by a massive financial scandal amid allegations that billions of dollars were stolen from a state investment fund founded and overseen by the Prime Minister.

Profit plunges for Malaysias Petronas on low oil prices

AFP, KUALA LUMPUR: Malaysias state energy firm Petronas said yesterday profits plunged 85 per cent in the second quarter due to low oil prices, adding to concerns about the countrys slowing economy. Petronas, Malaysias only Fortune 500 company and the largest source of government revenue and national export earnings, reported a net profit of 1.62 billion ringgit ($402 million) for the period, down from 11.07 billion last year. Revenue was 48.44 billion ringgit, 21 per cent lower than the same period in 2015. The firm said it expects to be impacted by volatility in oil prices for the rest ofthe year. Despite a modest recovery in crude oil prices, uncertainties remain due to persistent oversupply and sluggish demand outlook, it said in a statement. Energy-exporting Malaysia has the third-largest economy in Southeast Asia, but has been grappling with falling oil prices and weak overseas demanddenting revenues and putting severe pressure on the ringgit. The country has also been rocked by a massive financial scandal amid allegations that billions of dollars were stolen from a state investment fund founded and overseen by the Prime Minister.