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KUALA LUMPUR (Bernama) – Petronas records a net loss of RM3.4 billion for the third quarter (Q3) ended September 30, 2020 compared to net profit of RM7.4 billion in the same quarter last year , due to lower earnings, interest, taxes, depreciation and amortization (EBITDA).
A higher loss due to asset impairment and higher tax expenses attributed to the derecognition of deferred tax assets, mainly as a result of the prospect of lower oil and gas prices, also affected its financial performance.
“Excluding the impairment loss, the group would record a net profit of RM2.6 billion,” the national oil company said today in a statement.
The group posted revenue of RM 41.1 billion, down 25 percent from RM 55.1 billion in the corresponding quarter last year, mainly due to lower average prices for major products.
“Having persevered for nine grueling months, Petronas has recorded slight improvements in the third quarter compared to the previous quarter as a result of the sporadic relaxation of lockdowns that has led to the gradual resumption of economic activities around the world,” he said its president and CEO of the group, Tengku Muhammad Taufik. said.
He said Petronas is taking a cautious outlook and anticipates that the remainder of 2020 will be challenging amid the fluid operating environment brought on by the pandemic, as well as prolonged volatility in oil prices.
“We expect our performance to be continually affected by the volatility in oil prices compounded by the ongoing COVID-19 pandemic,” he said.
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