- POSTED: 14 May 2014 21:03
Malaysian state energy firm Petronas said Wednesday its first quarter net profit slipped eight percent despite higher revenue due to added operating expenses.
KUALA LUMPUR: Malaysian state energy firm Petronas said Wednesday its first quarter net profit slipped eight percent despite higher revenue due to added operating expenses.
The oil giant saw revenue rise 10 per cent to 84.05 billion ringgit (US$26.09 billion) compared to the same period last year, but higher depreciation and impairment costs saw net profit fall to 18.76 billion.
This comes after "one of the best years ever", with the company's profit increasing 10 per cent to 65.59 billion ringgit for the 2013 financial year.
Petronas, Malaysia's only representative in the Fortune 500, said in its financial report that its higher first quarter revenue was due to increased production that met stronger consumer demand and a favourable slide of the ringgit against the US dollar.
"Excluding the effect of the higher depreciation, amortisation and impairment expenses during the quarter, EBITDA slightly increased by 0.3 billion ringgit as compared to the same period in 2013," it said.
Sales of petroleum products were up seven per cent from the corresponding period last year, but were offset by a fall in crude oil prices -- as much as 3.9 per cent for Brent.
Petronas' investments in Sudan and Iraq paid dividends however, contributing significantly to higher oil and gas production than both the previous quarter and the same period last year.
Petronas contributes about half of Malaysia's budget revenue.