Malaysia’s state-owned energy company Petronas registered a net loss of MYR3.4 billion ($835 million) in the July-September period of 2020, reversing the RM7.4 billion net profit a year earlier. The loss was attributed to lower EBITDA, higher tax expenses, and higher impairment charges on assets. Petronas; third-quarter EBITDA stood at MYR14.0 billion ($3.4 billion), falling from RM18.8 billion in the same quarter last year.
The third-quarter loss, however, is lower than MYR21.04 billion net loss posted in the April-June quarter. The company said the quarter-on-quarter decline in its loss was attributed to a better economic environment after the government eased lockdown measures and allowed the economy to reopen. For the first nine months of 2020, Petronas’ net loss stood at MYR19.89 billion ($4.9 billion), compared to a net profit of MYR36.36 billion a year earlier.
Petronas’ revenue grew by 21% quarter-on-quarter to MYR41.08 billion ($10.1 billion) in the third quarter thanks to higher benchmark price for key products and improved sales volume of petroleum products, LNG, and processed gas. Compared to a year earlier, Petronas’ third-quarter revenue was down 25% from MYR55.11 billion.
Looking forward, Petronas CEO Tengku Muhammad Taufik said the company would adopt a cautious approach, anticipating the rest of the year to be challenging. Taufik added that the pandemic and the oil price volatility would continue the company’s performance.
