* Q3 loss 3.4 bln rgt vs year-ago profit of 7.4 bln rgt
* Revenue drops 25%
* Volatile oil prices, weak demand to hurt full-year results
* Pengerang project on track for commercial ops
KUALA LUMPUR, Nov 27 (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
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
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
Excluding the impairment loss, Petronas recorded a profit of
2.6 billion ringgit on revenue which fell 25% to 41.1 billion
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.
Editing by David Goodman and Elaine Hardcastle)