Petronas H1 Net Profit Falls 19% on Lower Oil Prices, Rising Costs

KUALA LUMPUR (Aug 29): Petroliam Nasional Bhd (Petronas) reported a 19% drop in net profit for the first half of 2025, as weaker oil prices, rising costs and foreign exchange losses weighed on its performance.

The national oil-and-gas company posted a net profit of RM26.2 billion for the six months ended June 30, down from RM32.4 billion a year earlier. Revenue fell 16% year-on-year to RM132.56 billion, largely due to lower average selling prices of crude oil and petroleum products, as well as the disposal of its South African unit. The company also booked RM426 million in foreign exchange losses.

Petronas president and group chief executive officer Tan Sri Tengku Muhammad Taufik said the group is preparing for prolonged headwinds as benchmark Brent crude prices have slipped nearly 9% this year to around US$68.

Petronas

“We will double down on efforts in commercial and operational excellence, portfolio high-grading and disciplined financial stewardship,” he said. “These measures are intended to put Petronas in a position to enhance efficiency and build a strong foundation for future growth.”

The company spent RM17.7 billion in capital investments during the period, mainly on upstream development and production. It also highlighted progress on upstream discoveries in Malaysia, Suriname, Indonesia and Angola, and the successful shipment of its first LNG cargo from the newly commissioned LNG Canada project.

Petronas, Malaysia’s only Fortune 500 company, now releases results on a half-yearly basis. It warned that oil prices are likely to remain subdued due to geopolitical tensions, macroeconomic uncertainties and the unwinding of Opec+ production cuts.

Despite the challenges, Petronas said it remains committed to delivering shareholder value and strengthening energy security with lower-cost, lower-emission hydrocarbons.

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