Petronas shows resilience amid rise in energy security costs

Petroliam Nasional Bhd, commonly known as Petronas, reported a profit after tax of RM27.2 billion for the first half of 2026, marking a 4% increase from the previous year's RM26.2 billion. Revenue grew by 15% to RM152.4 billion, while earnings before interest, tax, depreciation and amortisation rose by 4% to RM56.8 billion. The company attributed the revenue growth to higher domestic production, increased sales of liquefied natural gas and processed gas, and favorable average realized prices across major products.

However, gains were partially offset by unfavorable foreign exchange impacts and cost pressures stemming from global energy market volatility.

The national oil company emphasized the importance of safeguarding energy security for Malaysians, particularly amid ongoing geopolitical tensions in West Asia. Group President and CEO Tengku Muhammad Taufik Aziz highlighted strategic investments to bolster the company's portfolio for long-term resilience. Capital expenditures more than doubled to RM41.4 billion in the first half, driven by investments in PRefChem joint venture and upstream exploration activities.

Petronas' downstream business played a crucial role in maintaining national energy security during the West Asia conflict by diversifying crude sourcing and supporting domestic supply needs. The company's capital expenditure plans include expanding LNG supply arrangements, strengthening supply resilience, and exploring new energy offerings.

Despite the challenging operating environment, Petronas remains cautious about the future, given the global energy landscape's continued fragility due to geopolitical headwinds and the prolonged conflict in West Asia.