PETRONAS Reports Lower Profit Amid Market Challenges, Focuses on Long-Term Value

Financial Performance

For the financial year ending 31 December 2025, PETRONAS reported a revenue decline of 17% to RM266.1 billion, primarily due to lower average realized prices, reduced sales volume, foreign exchange impacts, and the divestment of Engen Group. Profit After Tax (PAT) decreased by 18% to RM45.4 billion, partially offset by lower tax expenses. EBITDA fell by 10% to RM103.0 billion, aligning with the lower profits.

Cash Flow and Investments

Cash Flows from Operating Activities (CFFO) were RM85.2 billion, consistent with the lower EBITDA. Capital Investments amounted to RM41.6 billion, focusing on upstream development and production activities. The capital allocation prioritized high-value projects, emphasizing early monetization and portfolio high grading.

Asset and Equity Changes

Total assets increased to RM775.0 billion. However, shareholders’ equity decreased to RM448.3 billion, mainly due to dividends declared and foreign exchange movements, partially offset by profits during the period.

Second Half FY2025 Analysis

In the second half of FY2025, revenue declined to RM133.6 billion, driven by lower average realized prices for LNG, crude oil, condensates, and petroleum products, as well as foreign exchange impacts. PAT decreased by 15% to RM19.2 billion, in line with lower revenue and net impairment losses on assets. EBITDA dropped by 3% to RM48.6 billion, reflecting reduced profitability.