Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Malaysia's Petronas warns of challenging fourth quarter amid volatile oil prices

11/27/2020 | 10:01am EST
Petronas logos are pictured at a fuel station in Kuala Lumpur

KUALA LUMPUR (Reuters) - Malaysian state-owned energy giant Petronas swung to a third-quarter loss on Friday and warned the remainder of the year would remain tough due to prolonged low oil prices and demand hampered by coronavirus restrictions.

The world's fourth-biggest LNG exporter reported a loss of 3.4 billion ringgit ($836 million) for the July to September period, against a profit of 7.4 billion ringgit in the same quarter last year.

"Amid the fluid operating environment brought about by the pandemic as well as prolonged volatility of oil prices, Petronas is adopting a cautious outlook and anticipates that the remainder of 2020 will be challenging," Tengku Muhammad Taufik, president and group chief executive officer said in a statement.

"We expect our performance to be continuously affected by the volatility of oil prices aggravated by the ongoing COVID-19 pandemic," he added.

Petronas, or Petroliam Nasional Berhad, said it would continue to uphold "disciplined capital and operational spending" and preserve liquidity to ensure business sustainability.

The firm's second straight quarterly loss was attributed to a higher impairment charge on assets and higher tax expenses due to de-recognition of deferred tax assets and a lower oil and gas price outlook.

Excluding the impairment loss, Petronas recorded a profit of 2.6 billion ringgit on revenue which fell 25% to 41.1 billion ringgit.

The company said it was on track for commercial operations to begin at its $27 billion Pengerang Integrated Complex in the southern Malaysian state of Johor.

A restart of the refinery and petrochemical plants is planned for the first quarter, the firm said.

The project, in which Saudi Aramco is a partner, suffered a fire in March that killed five people.

($1 = 4.0680 ringgit)

(Reporting by Mei Mei Chu; additional reporting by A. Ananthalakshmi; Editing by David Goodman and Elaine Hardcastle)

© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
LONDON BRENT OIL 0.27% 55.68 Delayed Quote.8.43%
SAUDI ARABIAN OIL COMPANY -0.14% 34.75 End-of-day quote.-0.71%
WTI 0.59% 52.69 Delayed Quote.9.49%
Latest news "Economy & Forex"
10:54aBANK OF ESTONIA : Estonian businesses are investing less than the European average in innovation says Madis Müller
10:53aMVIS CryptoCompare Institutional Bitcoin Index Licensed to Ninepoint Partners LP
10:48aABC ASSOCIATED BUILDERS AND CONTRACTORS : Investment in Nonresidential Structures Up Meager 3% in Final Quarter of 2020, Says ABC
10:35aU.S. Leading Economic Index Ticks Up in December
10:32aProtesting Indian farmers locked in stand-off with police near capital
10:29aFacebook oversight board overrules company on most cases in first test
10:23aIndia's budget aiming to revive economy with limited fiscal headroom
10:19aOil firms as dollar slips, but demand worries persist
10:19aWall Street rises on big-tech strength, shrugs off bleak data
10:18aEXCLUSIVE : Samsung, Hyundai, Daewoo prepare for Petrobras oil platform tender -sources
Latest news "Economy & Forex"