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Malaysia's Petronas Q2 net profit slips

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(Globalpost/GlobalPost)

Malaysian state energy firm Petronas on Monday said it recorded slightly lower second-quarter net profit year-on-year as bigger operating expenses offset higher revenue.

Net profit for the three months ending June 30 was 15.26 billion ringgit ($4.6 billion), down 0.9 percent from 15.40 billion ringgit in the same quarter last year, Petronas said in a statement.

Higher operating expenses and lower gain on disposal of investments led to the "relatively flat" profit, Malaysia's only representative in the Fortune 500 said.

Revenue rose 5.2 percent to 74.42 billion ringgit for the quarter driven by more crude oil and sales gas trading, and petroleum product sales, amid stronger demand, the company said.

Lower average prices for its products -- in line with the downward trend of benchmark crude oil prices -- and a stronger ringgit against the US dollar offset some of the gains.

Petronas maintained it expected the overall year performance to be "satisfactory", steering through global economic and geopolitical uncertainties, volatile oil prices and sluggish growth of global oil demand.

The company, which contributes nearly half of Malaysia's budget revenue, has predicted flat profit for the year. Net profit fell 4.7 percent for the first quarter.

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http://www.globalpost.com/dispatch/news/afp/130826/malaysias-petronas-q2-net-profit-slips