Dateline 2015-08-22, The Star:
IN Malaysia, at the centre of the oil price crash lies Petroliam Nasional Bhd (Petronas), whose fortunes are inextricably woven with that of our nation’s.
The question that everyone keeps asking is how badly will Petronas be affected and what would the impact of that be.
The simple answer is that in the short- to medium-term (and also depending on how prolonged the oil price decline will be) Petronas will be badly hit, like all other major oil companies.
But in comparison to international oil companies (IOCs), Petronas is buffered in the sense that it owns the oil and gas deposits in Malaysia.
Still, Petronas’ latest second quarter result displayed the extent to which it was being affected by the lower oil price – profits from its upstream business fell by 57% for the first six months of this year.