Petronas posts resilient 1H 2026 results, stays focused on safeguarding energy security

Petroliam Nasional Bhd (Petronas) reported a modest increase in net profit and revenue for the first half of the financial year 2026, demonstrating disciplined execution and operational reliability amidst a challenging macro environment. The company's profit after tax (PAT) rose to RM27.2 billion, a 4% increase from the previous year, supported by higher EBITDA of RM56.8 billion and revenue growth of 15% to RM152.4 billion.

The growth was attributed to increased domestic production and sales of liquefied natural gas (LNG) and processed gas, along with favorable average prices for major products. However, a portion of the profit was offset by the recognition of accumulated share losses from joint ventures PRefChem, which was fully owned by the end of the period.

Petronas maintained its focus on safeguarding energy security and continued to invest in exploration and development activities in Malaysia to ensure long-term resource sustainability. Cash flows from operating activities decreased slightly by RM600 million, primarily due to working capital outflows. Capital investments totaled RM41.4 billion, mainly for downstream and upstream activities.

The company's cash and cash equivalents slightly decreased, while shareholders' equity increased by RM800 million due to profits, partially offset by RM20 billion in dividends. Petronas president and group CEO Tan Sri Tengku Muhammad Taufik emphasized the importance of energy security and strategic investments to reinforce the company's portfolio for long-term resilience, highlighting the group's unwavering commitment to financial and operational discipline, upstream position strengthening, and expansion of LNG supply nodes.

Looking ahead, Petronas acknowledged the fragile global energy landscape, characterized by geopolitical uncertainties and prolonged West Asia conflicts, which continue to influence prices and cost structures. Despite these challenges, the company remains resilient through prudent financial management and a steadfast commitment to advancing its transformation agenda, ensuring it remains well-positioned to navigate market volatility and create long-term value.