Petronas to Increase Role of Renewables in its Portfolio as it Posts Quarterly Loss

Friday, September 4, 2020

Malaysian state-owned energy giant Petroliam Nasional Berhad said on Friday it would reshape its portfolio after reporting its first quarterly loss in nearly five years following a coronavirus-related demand slump and lower oil prices.

Petronas, as the company is known, also warned its full-year performance would be severely affected and that demand may not return to pre-pandemic levels until the second half of 2021.

"Petronas has endured a very challenging first half of the year, and we expect our performance to be affected by the volatility of oil prices, which continues to be exacerbated by the uncertainties brought about by the ongoing COVID-19 pandemic," Chief Executive Tengku Muhammad Taufik Tengku Aziz said in a statement.

Petronas, the world's fourth-largest exporter of liquefied natural gas, has already flagged production cuts and cost savings to mitigate the impact of the pandemic.

It will now seek to expand its renewable energy portfolio, and reassess its oil and gas positions, CEO Tengku Muhammad Taufik, who took over in July, told a news conference.

Petronas has formed a team to look into developing a "higher value" portfolio, he said.

The company sees the biggest opportunities in solar and wind energy in the Asia Pacific region, he added.

Petronas reported a loss of 21 billion ringgit ($5.06 billion) for the April-June period, compared with a profit of 14.7 billion ringgit for the same period last year. The loss included impairment charges as the company readjusted its oil price outlook.

It was the first loss since the fourth quarter of 2015. Revenue fell 42% to 34 billion ringgit.

Petronas' annual dividend to the Malaysian government, its sole shareholder, will depend on its "affordability," the CEO said.

($1 = 4.1470 ringgit) (Reporting by Mei Mei Chu; writing by A. Ananthalakshmi; editing by Susan Fenton)

Categories: Activity Asia Renewables Malaysia Technology Vehicle News Engineering Subsea

Related Stories

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Brownfield Output Decline Accelerates, says IEA

Aquaterra Energy Nets Subsea Analysis Contracts with INPEX off Indonesia

Chinese Contractor Secures Offshore Oil and Gas ‘Mega Deal’ from QatarEnergy

China Rolls Out 17MW Floating Wind Turbine Prototype

SBM Offshore’s Jaguar FPSO Enters Drydock in Singapore (Video)

CNOOC Finds Oil and Gas in South China Sea

Seatrium Makes First Turnkey FPSO Delivery to Petrobras

Aker Solutions, PTAS JV Hooks Brownfield Services Extension off Brunei

Current News

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

Aesen, DOC JV Targets Subsea Cable Logistics

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Yinson Production Nets DNV Approval for New FPSO Hull Design

Hanwha Ocean's Tidal Action Drillship Starts Maiden Job with Petrobras

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com