KUALA LUMPUR, Nov 11 — State oil firm Petronas experienced a continued fall in net profits during the previous quarter, registering just RM1.4 billion in post-tax profit according to its third-quarter performance report for 2015.
The figure was a drastic drop from the RM15.1 billion it registered over the same period last year.
Petronas' third quarter performance brings its current net profit margin over the first nine months of this year to RM24 billion, a 57-per cent drop compared to RM54.9 billion in net profit compared to the corresponding period in 2014.
Petronas president and group chief executive Datuk Wan Zulkiflee Wan Ariffin said the situation was expected with the continued slump in global crude oil prices, but noted that the sluggish performance this quarter was largely due to oversupply that has hit profit margins for all industry players.
With market conditions expected to remain dour heading into next year, he said the company will need to maintain prudent spending and austerity measures, which led to a 23 per cent cut in their operating expenditure for 2015.
Petronas is also taking the approach that the current price is "the new normal", choosing to set their 2016 projections on the assumption that Brent crude will trade at US$48 (RM209.31) per barrel, though Wan Zulkiflee said they will "religiously review" their portfolio.
"Moving forward, with the outlook on the oil and gas sector still uncertain, we must focus on adapting more prudent approaches to our cash management and materialising internal efficiency measures," he said at the release of the third quarter report.
Petronas also announced that its dividend payout to Putrajaya next year will be RM16 billion based on the company's performance this year.
The sum is a 40 per cent drop from the RM26 billion payout that the federal government can expect to receive this year as part of Petronas' annual commitment.
The company, however, could not say if next year's payout will draw from their reserves or from this year's profits, until the figures for their fourth quarter performance are in.
Earlier in August, Petronas said it will need to dip into their cash reserves to meet the dividend commitment for 2015, as profits plunged due to weak global oil prices.
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