Malaysian energy giant Petronas reported lower earnings for the year 2019 impacted by lower revenues and impairments on assets.
Profit after tax (PAT) for the financial year stood at 40.5 billion Malaysian ringgit ($9.6 billion), 27 percent lower than the 55.3 billion Malaysian ringgit posted in the previous year.
The company reported a 4 percent drop in its revenue that reached 240.3 billion Malaysian ringgit ($56.9 billion) as compared to 251 billion Malaysian ringgit in 2018.
The decrease was partially offset by the impact of higher sales volume, mainly for petroleum products and LNG coupled with the effect of the weakening of the ringgit against the US dollar exchange rate.
Total LNG sales volume for the year was 5.9 percent higher at 30.6 million metric tonnes as compared to 28.9 million metric tonnes in 2018, mainly attributed to higher production volume from PETRONAS LNG complex in Bintulu.
LNG production for the year remained strong with an increment of 5.0 percent at 28.1 million metric tonnes as compared to 26.7 million metric tonnes in 2018, contributed by higher feedgas supply and stable plant performance, the company said in its report.
The outlook of the oil and gas industry remains bearish, given the ongoing geopolitical uncertainties, prolonged trade tensions and near-term demand disruptions due to COVID-19 outbreak, Petronas said.