Petronas on track to beat full-year target after strong Q2

Petroliam Nasional Bhd made better quarterly profits mainly on stronger oil prices and is optimistic of beating its earlier full-year pre-tax profit target of RM60 billion.

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It is confident of making at least RM70 billion this year, which has been shortened to just nine months, as it will be changing the end of its financial year to December 31 from March 31. President and chief executive officer Datuk Shamsul Azhar Abbas said Petronas' profit has already reached some RM57 billion in the first six months that ended on September 30. "Given the current trend, I see no problem of the company surpassing the initial target," he told a briefing here yesterday. For the second quarter ended September 30 2011, Petronas made a profit of RM18.3 billion on revenue of RM71.8 billion compared with RM11.9 billion and RM56.9 billion, respectively, over the same period last year. Its six-month revenue jumped by a quarter to RM144.8 billion on higher realised prices of petroleum products, crude oil and condensates, liquified natural gas and petrochemical products. Shamsul Abbas warned that the oil and gas industry will not be spared from the global economic uncertainty due to the eurozone sovereign debt crisis concerns and continuing geopolitical risks from the Middle East and North Africa. Already, oil prices have fallen in the current quarter from the second quarter on prolonged concerns over Europe and the US economy. He expects crude oil prices to hover between US$85 (RM268) and US$87 (RM274) per barrel next year. Meanwhile, the group plans to expand its power business in Japan and India, said Datuk Anuar Ahmad, executive vice-president for gas and power business. "We started with Singapore and also looking for Malaysian project in Johor and going to focus on the Asia-Pacific region, including India," he added. Petronas executive vice-president for exploration and production Datuk Wee Yiaw Hin also did not rule out plans to bid for new projects in Myanmar. "Yes, at the moment in Myanmar, we are only in the offshore and business is quite good. We will jointly bid for the onshore fields with our existing partners in Myanmar." Shamsul Abbas said Petronas will contribute RM1 billion to the National Trust Fund this year. "For the last 16 years, we have been contributing RM100 million a year. But with the results we have achieved over and above our expectations, we have decided to contribute RM1 billion a year," he said. The fund is used to conserve and restore what is considered as national heritage.