Petronas shows resilience amid rise in energy security costs
The national oil company says its performance was supported by higher realised prices and sales volumes, but came amid supply disruption and rising energy-security costs.
Petroliam Nasional Bhd, also known as Petronas, reported a profit after tax of RM27.2 billion for the first half of 2026, an increase of 4% from RM26.2 billion in the previous year. Revenue grew by 15% to RM152.4 billion, while earnings before interest, tax, depreciation, and amortisation rose 4% to RM56.8 billion. The profit surge was attributed to higher domestic production, increased sales of liquefied natural gas and processed gas, and favorable average realized prices for major products.
However, the gains were tempered by unfavorable foreign exchange effects and pressures from volatility in the global energy market.
The national oil company's focus in the first half of 2026 is to ensure energy security for its customers. Tengku Muhammad Taufik Aziz, Group President and CEO, highlighted strategic investments to bolster the company's portfolio for long-term resilience in response to the energy crisis. Capital expenditure more than doubled to RM41.4 billion, primarily driven by investments in the PRefChem joint venture and upstream exploration activities.
Despite a slight dip in cash flows from operating activities to RM47.5 billion, following working capital outflows, Petronas remains cautious about the global energy landscape's uncertainties and geopolitical tensions.
Malaysia relies on imported crude and careful supply planning for domestic fuel availability, with the country producing 350,000 to 360,000 barrels of crude oil daily and refining capacity at 730,000 to 740,000 barrels per day. Petronas' downstream business supported national energy security during the conflict in West Asia by diversifying crude sourcing and meeting domestic supply needs.
The company also diversified crude sourcing through PETCO Trading Labuan to reduce dependence on the Strait of Hormuz. The results reflect the financial impact of Petronas assuming full ownership of PRefChem, enhancing operational alignment and flexibility. The company plans to continue maintaining financial discipline while expanding LNG supply, strengthening supply resilience, and offering new energy solutions.
Petronas' performance is closely monitored due to its role in federal revenue, fuel supply, gas reliability, and Malaysia's energy transition.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
