Petronas Q1 net profit up 60%

Malaysian state oil corporation Petroliam Nasional Bhd. said that first-quarter net profit rose 60% from a year earlier on higher oil prices and cost-cutting measures, but warned of a sequentially weaker second half on concerns over a weak global economy. Petronas said net profit in the three months ended June 30 increased to 12.3 billion rinngit (US$3.9 billion) from 7.7 billion ringgit (US$2.5 billion) a year earlier. Petronas said in a statement that its stronger performance was underpinned by higher oil and petroleum product prices, as well as improved operational efficiencies and cost optimization initiatives. President and Chief Executive Shamsul Azhar Abbas said net profit for the financial year ending March 31 may be “slightly better” than in the just-ended fiscal year. Shamsul told a news conference that although results in the first half will be “good”, performance in the second half may stay at status quo at best, or “move downwards”, adding that the possibility of a double-dip recession in developed economies could damp earnings. Shamsul said the group continues to look for merger and acquisition opportunities outside Malaysia, particularly upstream targets, but there will be “greater emphasis on domestic deep water and unconventional plays to arrest domestic production declines.” (October 4, 2010)