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Petronas enjoys profit bump from high

prices, increased sales volumes

MALAYSIA MALAYSIA’S Petronas reported on March 13 a supply challenges, this means volatility,” he told
55% climb in profits for the first quarter on the a news conference.
The company expects back of higher prices and increased sales vol- Petronas plans to continue its “prudent
prices to be more umes. However, the state-owned LNG exporter financial management and firm discipline”
subdued this year. warned that prices would be more subdued this that it maintained in the 2018-22 period,
year as a result of a forecasted slowdown in the it said. But capital expenditures in 2023-
global economy. 27 will rise to MYN300bn in 2023-27 from
Net income for the company in the first quar- MYN208.5bn in 2018-22. The company
ter amounted to MYR24.4bn ($5.44bn), up from expects to raise capex funds through partner-
MYN15.7bn a year earlier. Revenue, meanwhile, ships with energy investors rather than from
grew by 38% to MYN105.9bn. Petronas joined capital markets, it said.
other leading global oil and gas producers in see- As much as a fifth of capex, or MYN12-15bn
ing a spike in full-year profits for 2022, of 51% to annually, will be spent on decarbonisation and
MYN375.3bn. Its profit for the year doubled to energy transition investments, the company
MYN101.6bn. said.
Petronas and other LNG exporters have cap- In related news, Petronas reported a force
italised on a boom in demand for LNG world- majeure on gas supply to one of its LNG termi-
wide over the past year as a result of Russia’s nals, Malaysia LNG Dua, in late September. The
significant cuts in pipeline gas supply to Europe, incident was the result of a pipeline leak caused
and global supply constraints. by soil movement. But the company says it will
Petronas CEO Tengku Muhammad Taufik still fulfil its contractual supply obligation this
expects a price correction this year, however. year.
“As demand recovery is still fragile, based on Petronas has also put on hold the Limbayong

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