PETRONAS posted a net loss of RM3.4 billion for the third quarter (Q3) ended September 30, compared to a net profit of RM7.4 billion in the same quarter last year, due to lower earnings before interest, taxes, depreciation, and amortisation.

Higher impairment loss on assets and higher tax expenses attributed to derecognition of deferred tax assets also affected its financial performance.

“Excluding impairment loss, the group would record a net profit of RM2.6 billion,” the national oil company said in a statement today.

The group recorded a revenue of RM41.1 billion, lower by 25% than the RM55.1 billion recorded in the corresponding quarter last year, mainly due to lower average realised prices for major products.

“Having persevered through nine gruelling months, Petronas has recorded slight improvements in quarter three compared to the previous quarter resulting from sporadic easing of lockdowns which has led to gradual resumptions of economic activities worldwide,” said group chief executive officer Tengku Muhammad Taufik.

He said Petronas is adopting a cautious outlook and anticipates that the remainder of 2020 will be challenging amid the fluid operating environment brought about by the pandemic as well as prolonged volatility of oil prices.

“We expect our performance to be continuously affected by the volatility of oil prices aggravated by the ongoing Covid-19 pandemic,” he said. – Bernama, November 27, 2020.