PETRONAS

Oil & Gas

Petronas says it remains committed to Canadian LNG project

Malaysia's Petroliam Nasional Bhd (Petronas) PETR.UL said it is committed to its Canadian liquefied natural gas (LNG) project despite the tumble in oil and gas prices which has hurt the state-owned oil company's profitability. The project would see Petronas build an export terminal near the British Columbia port city of Prince Rupert, a natural gas pipeline and ongoing gas development. Petronas had reached a deal with British Columbia in May on the proposed project, drawing it closer to its final investment decision. "Petronas would like to reaffirm its commitment to deliver long term LNG supply to its customers through the Pacific NorthWest LNG project in Canada, despite the current market volatility for oil and gas," its chief executive officer for Upstream, Wee Yiaw Hin, said in an emailed statement.

Markets

Malaysia’s Petronas says operations won’t cover 2015 dividend

Malaysia's Petroliam Nasional Bhd (Petronas) PETR.UL on Friday said cash from operations will cover neither capital expenses nor committed dividends for 2015, forcing the state-owned oil firm to draw on reserves and further cost savings. Petronas contributes almost half of Malaysia's oil revenue. But weak global prices have depressed income, leaving the country with a devalued currency and at risk of a credit-rating downgrade, while debts mount at state investment fund 1MDB. "We will have to persevere with more austerity measures," said Petronas President and Group Chief Executive Wan Zulkiflee Wan Ariffin at an earnings briefing.

Oil & Gas

Plexus wins Petronas deal for equipment in Malaysian marketplace

Plexus Holdings has won a deal with Petronas to help launch its wellhead equipment into the Malaysian marketplace. The deal will see the use of the company’s POS-Grip wellhead equipment which has been commissioned as part of its JV (Joint Venture) with (IPS) Integrated Petroleum Services. IPS, an upstream support services business to the offshore oil and gas industry in Malaysia and the Asia Pacific region, is already a licensed vendor to Petronas.

Markets

Petronas first-quarter profit plunges on oil price slump

Petroliam Nasional Bhd., Malaysia’s state oil company, posted a 43 percent decline in first-quarter profit after a plunge in crude oil prices. Net income dropped to 9.3 billion ringgit ($2.6 billion) in the three months through March 31, compared with 16.2 billion ringgit a year ago, the company said in a statement today. Revenue fell 21 percent to 66.2 billion ringgit, as lower oil prices offset an increase in production. The company expects sustained low oil prices to affect its 2015 performance. Excess supply on the back of moderate global oil demand continues to put pressure on crude, it said in the statement. “We view this period of low oil prices as an opportune time to relook at our internal processes,” Wan Zulkiflee Wan Ariffin, who took over as president and chief executive officer last month, told reporters in Kuala Lumpur Friday.

Oil & Gas

Petronas to delay start-up of refinery

Petronas said it would be delaying the start-up of its $16billion RAPID refining and petrochemical complex in Malaysia until mid-2019. The move will push the project back from earlier that year. The decline in oil price has led to a review by Petronas looking at some of its engineering, procurement and construction contracts.

Markets

Petronas turns to $2.7 billion fourth-quarter loss on oil slump

Petroliam Nasional Bhd., the Malaysian state oil company preparing for a leadership transition in April, reported a loss in the fourth quarter following crude’s plunge. The loss was 9.9 billion ringgit ($2.7 billion) in the three months through December 31, compared with a 9.6 billion ringgit profit a year ago. Revenue dropped 6.4% to 79.4 billion ringgit. Wan Zulkiflee Wan Ariffin will succeed Shamsul Azhar Abbas as president and chief executive officer at a time when the slump in crude is eroding earnings needed to narrow the state budget deficit. Oil is rebounding from the lowest prices in almost six years as US-based drillers, pumping crude at a record pace amid a shale boom, reduce the number of active rigs. “Petronas Group is taking steps to reduce its planned capital investments and operating expenditure in order to mitigate the potential adverse effect on its profitability and cash flows,” the company said in a statement today.

Oil & Gas

Technip wins Petronas contract

Petronas has awarded Technip a five-year agreement for an Engineering, Procurement, Construction & Installation (EPCI) deal for projects in Malaysia. The contract will see the French services company provide supply only of flexible pipes and is the third new contract deal announced this week. Asiaflex Products, Technip’s flexible pipe manufacturing plant located in Johor, Malaysia, will execute the framework agreement.