Petronas Q3 profits jump 281 percent quarter-on-quarter

Petronas said today that its third quarter profit-after-tax rose to RM6.1 billion, a rise from RM1.6 billion in the second quarter.

Its revenue for the quarter stood at RM48.7 billion ringgit, a one percent, or RM0.3 billion increase from the preceding quarter.

The state oil firm said the improved quarter-on-quarter performance was due to lower net impairment on assets and higher average prices for most products.

Although, it was partially offset by lower sales volume for major products.

For the nine month period ended Sept 30, 2016, Petronas' profit-after-tax was RM12.3 billion, a 48 percent decline compared RM23.8 billion recorded the year before.

This was posted on the back of RM146.3 billion revenue, which fell by 22 percent from 2015.

This was mainly due to the downward trend of key benchmark prices, higher net impairment on assets and lower sales volume of petroleum products, crude oil and condensates and processed gas.

"Current oil price environment continues to pose significant challenges to the industry and the outlook remains uncertain.

"While performance in 2016 is affected, Petronas has been responsive with strong operational efficiency and financial discipline," the group said in a statement on Wednesday.