Petronas Still a Safe Bet


Umm, when did PETRONAS start trading stock? Why did you not tell me? Safe bet for who?

Dateline 2015-04-10, The Establishment Post (who?):

When Petronas posted a huge loss in the last quarter, there was great fear that the economy was going into a nosedive. The state-owned oil and gas company has contributed to the government more than RM800 billion (US$216.5 billion) since it was set up 41 years ago, according to business portal Kinibiz. When Petronas sneezes, there is no denying that Malaysia will catch a cold.

Petronas (Petroliam Nasional Berhad) is Malaysia’s largest single taxpayer and the biggest source of revenue. Over the years, the company has contributed 30 to 45 per cent of the government’s annual revenue. It is Malaysia’s only Fortune 500 company and among the most profitable companies in the world.

So when the Brent crude oil price of US$115 per barrel in June plunged to US$45 in January 2014, there was an air of gloom. In the last quarter of 2014, Petronas saw losses amounting to RM7.3 billion (almost US$2 billion). A drop of this size has never happened since the national oil company started filing financial results on a quarterly basis five years ago. Prior to that, Petronas was earning an average of RM16 billion (about US$4.3 billion) a quarter.

 

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