Friday, August 26, 2011

#Flash* Petronas 1Q net profit up 48% to RM21.7b

KUALA LUMPUR : Petroliam Nasional Bhd's net profit increased 48% to RM21.65 billion in the first quarter ended June 30, 2011 from RM14.62 billion a year ago, boosted by the strong crude oil price but slower economic growth was expected to trim its earnings.

The national oil corporation's improved performance was driven by higher prices across its product range with favorable crude oil price pushing up the group's revenue by 24.6% to RM73 billion from RM58.6 billion a year ago.

Petronas chief executive officer Datuk Shamsul Azhar Abbas said on Friday, Aug 26 the improved performance in the first quarter was however not sustainable as the macro economic conditions in the second half gets worsen due to the uncertainties in the developed countries.

"Based on the July numbers, the economy is heading into a slowdown in the second quarter and this is expected to continue into next year. We had a good run during the first quarter but I think the party is over now," he said.

In the first quarter, average benchmark price of crude oil was in the range of US$105 to US$110 per barrel, whereas it has since dropped to around US$80 to US$85 per barrel now due to the slower demand.

Petronas had in March 2011 announced that it is changing its financial year end from March 31 to Dec 31, reducing it to only nine months.

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