Petronas posts higher pre-tax profit of RM26.1 bln in first half 2017

National hydrocarbon custodian, Petronas, recorded a higher pre-tax profit of RM26.1 billion in the first half of this year from RM10.3 billion posted in the same period last year.

Revenue rose to RM108.1 billion from RM93.7 billion previously, benefiting from the upward trend of key benchmark prices and foreign exchange rate but was partially offset by lower sales volume, President and Group Chief Executive Officer, Datuk Wan Zulkiflee Wan Ariffin said.

He said the better profit was due to higher average realised prices as well as lower net impairment on assets and well costs.

"Our earnings before interest, tax, depreciation and ammortisation increased to RM45 billion from RM34 billion from the first half of last year, due to higher average realised prices," he told reporters after announcing the company's first-half financial results here today.

Following the stellar performance, he said Petronas would be paying an additional dividend of RM3 billion to the government on top of the RM13 billion dividend already announced previously.

He said the dividend would be paid in a staggered basis.

Elaborating further on the performance of the national oil corporation, Wan Zulkiflee said Petronas had also managed to achieve a five per cent lower operational cost in the said period.

He pointed out that the company spent RM21 billion for capital investment in the first half of this year, RM4 billion lower than the same period last year, mainly for the Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang, Johor.

The project is at its peak of construction activities with almost 60,000 workers on site, he added.

"Our cash position remains strong, with a cash balance of RM138 billion as of end-June," he said.

-- BERNAMA