By REUTERS
Petroliam Nasional Bhd (Petronas), Malaysia’s state oil firm, expects pre-tax profit of RM89 billion this year, equal to last year, as a lower average oil price offsets a targeted 2% rise in production.
“Nothing is going to change,” President and Chief Executive Shamsul Azhar Abbas told reporters on Wednesday.
Petronas said production from Canada and Malaysia presently makes up for a smaller contribution from Sudan, which resumed production in March with output expected to rise to 120,000 barrels a day by mid-2014 from 200 barrels currently.
Production from Sudan, which is estimated by Moody’s Investors Service to account for 7% of Petronas’ total hydrocarbon production in 2011, was halted last year on geopolitical concerns.
Petronas posted a 2.4% year-on-year drop in its first quarter net profit, as margins were weakened by higher expenses.
Revenue in the quarter climbed to 76.68 billion ringgit from RM75.25 billion in the first quarter of 2012.
The company is trying to secure larger reserves overseas in order to stay profitable and compensate for declining domestic output, completing a C$5.2 billion (US$5.3 billion) takeover of Canada’s Progress Energy Resources Corp in December.
“The global economic uncertainties are expected to lead to continued volatility in oil prices and global oil demand, which may affect Petronas’ group performance,” the company said in a statement.
“Despite these challenges and the continued high-cost environment, the board expects the current year performance to be satisfactory”.
-REUTERS
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