PETRONAS RECORDS NET PROFIT OF RM43.6BILLION

This is an UPDATE, from the New Straits Times, which reports on a sllightly higher net profit achieved by the national oil corporation compared with Reuters' reoport yesterday.


Petronas pumps up record profit amid rising oil prices

June 30 2006

HIGHER crude oil prices pumped up Petroliam Nasional Bhd's (Petronas) net profit by 22 per cent to a record RM43.6 billion for the year-ended March 31 2006.

Revenue soared to an all-time high of RM166.9 billion.


The national oil corporation paid RM41.7 billion to the Government for the year, in the form of taxes, dividend, royalties and export duty.


Petronas president and chief executive officer Tan Sri Mohd Hassan Marican said the outstanding performance was achieved amid an increasingly competitive and challenging global oil and gas industry, filled with heightened volatility and uncertainties.


"This year's strong financial and operational achievements bear testimony to the group's determination and focus on its overall strategy to integrate, add value and globalise its operations," he said at a media conference in Kuala Lumpur yesterday.


Mohd Hassan said while higher prices were a factor, sales of liquefied natural gas (LNG) and petrochemical products were the key contributors to Petronas' high revenue.


Petronas sold 23.6 million tonnes of LNG this year, supported by higher volume produced and sold from the Petronas LNG complex in Bintulu, Sarawak, as well as from the group's Egyptian LNG plant.


The group's petrochemical business achieved its best ever operational performance, with improved plant reliability and utilisation rates.


"(Petrochemical) sales volume increased by 9.4 per cent to 7 million tonnes and generated a revenue of RM12.7 billion, an increase of 5.8 per cent," Mohd Hassan said.


Revenue from manufacturing activities - comprising petroleum products, LNG, processed gas and petrochemicals - rose to RM97.4 billion from RM78.2 billion.


"Revenue from manufacturing activities continued to account for a higher proportion of group revenue at 58.4 per cent, compared with 57.1 per cent in the previous year," he added.


Malaysia's best known multinational, Petronas' international revenue grew 22.9 per cent to RM130.2 billion. This included RM73.6 billion in exports. The rest is from overseas operations.


Petronas has strong total reserves of 25.85 billion barrels of oil equivalent (boe), which include new discoveries of 754.3 million boe. International reserves account for 23 per cent of the group's total reserves.


DESIDERATA:

Comments will follow later.

Some sarcastic Commenter took IT on himself to rebuke Desiderata for opicking on PETRONAS come every end-June to highlight PETRONAS performance.

Hey, what if I do, as a commoner but CITIZEN OF NEGARAKU, I have every right -- I deem it my duty -- to monitor on the the nation's LARGEST CORPORATE ENTITY, and it's supposed to be holding a national resource in the nation's trust.

What balrdy F***ing mind you have prefacing with a POTSHOT at mGf who are SOCIALIST by inlcination or by philosophical tendency, by thy insinuation that such attributes are negative. It is the ilk like you plus one V...... who pollute my Blogsite and I wish not to engage with the likes of you. I have better things to do than waste my precious time on scums like you.

A sum of net profit of RM43.6billion i.e. RM43,600,000,000 in one business entity that is equivalent to one year's Government budget allocation for the country under the 9th Malaysia Plan, and one F***ed up reader thinks Desi is over-spending time discussing the ISUUE.

I tyhink ALL CONCERNED MALAYSIANS HAVE BETTER SIT UP TO DISCUSS THE ISSUE.

What ex-PM Tun Dr Mahathir Mohamad hinted at has been confirmed officially with yesterday's PETRONAS RESULTS -- minus the RM30billion paid as taxes to the Government, the national oil corporation has NET PROFIT OF RM43.6BILLION -- is it too much to expect that instead of raising OIL PRICES at the pump, they should be decreased?

I have argued on the same topic that every time the world oil prices head north, out local pump prices should head south ... because MALAYSIA IS A NET BENEFICIARY FROM THE UPWARD PRICE TREND WORLDWIDE AS WE GET MORE REVENUE.
DO YOU FOLLOW THE LOGIC HERE?

IT's just that Petronas is not transparent nor accountable to the people (via Parliament) on how it spends its monies.


IF I DO ACTIVATE "WORD VERIFICATION" in Comments -- which I have considered several times but hesitated-- it's because of scums like you. Just go back to the hold where the sun don't shine.

To other ERR, I apologise for this rant -- which partly stems from the DELETED COMMENTS (2) in yesterday's Post (on Petronas pfrofit news break based on Reuters...).
I am on high blood pressure, so am taking a break now to seek out mGf Y&A, Theels,where is Miss AtenoLOL?


TO BE CONTINUED...?

PS: Thanks mate, HOWSY, A friend in need is a friend in deed.

UPDATED @8.30PM after visiting malaysia-today.net from a similar Post I extracted two RELEVANT COMMENTS in full, I hope Raja Petra Kamarudin and the guests Kim Quek and H J Anugus would not mind~~~


"
Kim Quek said...
'We have shown better margins and returns than the majors,' Tan Sri Hassan said.

This statement is blatantly dishonest, as the bulk of Petronas' so-called profits are derived from the the petroleum producers in this country through the "production-sharing" agreements signed between Petronas and these producers. For these incomes from crude oil and gas, Petronas need not have to spend a single dollar in the exploration, production and capital costs relating to these productions.

If Petronas and the Prime Minister have been honest to the people, such incomes derived from the "production-sharing" agreements should have been seprately stated in the accounts, and deducted from its total profits. Only then could we ascertain how profitable is Petronas' operation.

Friday, June 30, 2006 1:40:19 PM


"H J Angus said...

Make the PETRONAS' accounts public and we can all make a good analysis of how effective the government has been to take care of this vital asset of Malaysia.

At the moment it seems to be the personal fund of the PM as even our MPs are kept in ignorance.

Friday, June 30, 2006 3:57:31 PM "


"desiderata said...


I support Kim QWQuek and HJ Angus' viewpoints.
I have stated even last year when Petronas announced a NET PROFIT OF RM35.5billion that its performance is based on reaping a nation's natural resource (dwindling no doubt, but Lucky Country Malaysia gets new oil fields find every now and then, keeping Abdullah Ahmad Badawi's admin afloat!)

My conetntion here is EVERYTHING BEING EQUAL, there is a NET RISE IN REVENUE OF RM43.6billion MINUS RM35.5billion = RM8.1 billion for 2006 over last year, and this can easily absorb any world price rise and WE CONSUMERS SHOULD GET A DECREASE IN PUMP PRICEE, not a rise!

The Gomen and Petronas have been working hand-in-glove just disclosing the quantum rise in SUBSIDIES, but hide the fact of the extra RM8.1billion. On top of that, there is the RM30billion in taxes collected from Petronas, which is RISING EVERY YEAR, so the Gomen in fact SHOULD BE LOWERING PUMP PRICES everytime there is a wrold price rise because WE ARE A NETT BENEFICIARY!

(NOTE: What Malaysia produces is a higher grade crude called Sweets, fetching a PREMIUM over the imports which we use locally; so everytime the world price rises, the NATION'S COFFERS GET MORE, not less! TO SPEND!)

Petronas Chief, can you oplease explain the true nett position in the Income & Expenditure Columns as far as revenues from our oil production goes, as pointed out by Kim Quek, which are anyway jointly undertaken with MAJOR foreign oil companies like EXXON, SHELL, etc...

Friday, June 30, 2006 8:32:36 PM