Petronas' 1H profit edges higher to RM27.2bil

PETRONAS, Malaysia's national oil company, reported a slight increase in net profit for the first half of 2026, reaching RM27.2 billion, a 4% rise from the previous period. Despite market volatility, the company's revenue climbed 15% to RM152.4 billion, driven by enhanced domestic production, increased liquefied natural gas (LNG) and processed gas sales, and favorable average realisation prices.

Earnings before interest, tax, depreciation, and amortisation rose to RM56.8 billion. However, capital expenditure more than doubled to RM41.4 billion, primarily due to increased investments in downstream activities and expanded exploration and development in upstream operations. Total assets grew to RM794.3 billion, primarily due to higher investments in joint ventures, receivables, and inventories, though this was offset by reduced cash and cash equivalents and a decline in assets held for sale.

Petronas president and CEO Tengku Tan Sri Muhammad Taufik emphasized the group's commitment to financial and operational discipline while bolstering its upstream position, expanding LNG supply nodes, and developing new energy offerings. The company's primary focus in the first half of 2026 was to ensure energy security for its customers, which involved strategic investments to bolster its long-term resilience.

In response to the global energy crisis, Petronas leveraged its integrated portfolio's strength and intensified efforts across the value chain to maintain uninterrupted energy supply for Malaysia. The company aims to balance prudent financial management with its transformation agenda, positioning itself to navigate market volatility and sustain long-term value creation.