KUALA LUMPUR (Reuters) – Malaysia's state energy firm Petroliam Nasional (Petronas) said on Friday it expects oil and gas markets to face continued uncertainties this year, as it reported a drop in fourth quarter profit due to lower energy prices.
The conflicts in Ukraine and Gaza have led to heightened supply risks, while slowing global growth has hampered demand, Petronas Chief Executive Tengku Muhammad Taufik Tengku Aziz said.
"Despite this volatile backdrop, which shows no sign of subsiding or receding, Petronas remains resolute in its commitments to firstly monetise resources responsibly for economic growth," Muhammad Taufik said in a press conference.
Petronas posted a profit of 16.6 billion ringgit ($3.5 billion) in October-December 2023, down from 24.4 billion ringgit in the same quarter the previous year.
Revenue in the quarter fell 12% to 91.7 billion ringgit, due to lower average realised prices for all products in line with declining benchmark prices, Petronas said.
For 2023, it recorded revenue of 343.6 billion ringgit, while profit after tax was at 80.7 billion ringgit.
Petronas will "double down" on decarbonisation efforts as it looks to expand beyond its core upstream, downstream, and liquefied natural gas (LNG) businesses, including in clean energy solutions, renewables and hydrogen projects, Muhammad Taufik said.
"We welcome increased transparency of our operations given the heightened pressure for sustainability related disclosures," he said.
Petronas is on track to meet its near-term target of capping emissions at 49.5 million tons of CO2 equivalent by 2024 in its domestic operations, and is making progress towards commissioning its LNG plant in Canada, he added.
Like other oil majors, Petronas is ramping up investments in clean energy as part of its net zero carbon emissions goals.
It has said it will allocate 20% of its overall capital expenditure for decarbonisation projects and cleaner energy solutions from 2023 to 2026.