KUALA LUMPUR: Petroleum Nasional Bhd (Petronas) recorded a 91 per cent drop in net profit to RM1.4 billion for the third quarter ended September 30, 2015 compared to the same quarter last year.
Its revenue for the quarter dropped 25 per cent to RM60.1 billion from RM80.4 billion previously.
Its downstream business, however, recorded a 38 per cent increase in net profit to RM7.3 billion from RM5.3 billion.
For the nine-month-period, group net profit was RM 23.8 billion from RM 54.9 billion in the corresponding period of 2014, a 57 per cent drop.
This was a result of impairments taken on some upstream businesses in response to the prolonged low oil price and oversupplied global market.
The increase was fuelled by strong refining and marketing margins on the back of lower feedstock prices, as well as improved plant performances for its refineries and petrochemical plants.
At a press conference to announce the results today, its president and chief executive officer Datuk Wan Zulkiflee Wan Ariffin said the non-cash impairments are a necessary, prudent measure as the company braces for a long-drawn out period of low oil prices.
“However, we remain confident of being able to weather the storm given our strong cash flow of RM51 billion year-to-date and RM17 billion in the Q3 alone,” said Wan Zulkiflee.
The results reflected the impact of continued low oil prices, with Brent price averaging USD50 per barrel in Q3 compared to USD62 per barrel in the previous quarter.
Meanwhile, Wan Zulkiflee said the national oil company would be giving out lower dividend of RM16 billion payable in 2016 compared to RM26 billion this year.