Petronas Gas FY15 earnings up 7.8% to nearly RM2b

April 10, 2016

Dateline 2016-02-24, The Star:

Petronas Gas Bhd earnings rose to nearly RM2bil in the financial year ended Dec 31, 2015 boosted by a one-off recognition of deferred tax asset (DTA) while it expects its agreements and utilities to underpin its steady performance for 2016.

It announced a dividend of 17 sen per share compared with 15 sen a year ago. For FY15, the total dividends were 60 sen compared with 55 sen a year ago.

Petronas Gas said it expected a challenging economic environment. However, it envisaged its steady performance to continue, backed by its solid business models under gas processing agreement, gas transportation agreements and regasification service agreement signed with its parent, Petroliam Nasional Bhd.

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Moody’s review of Petronas’ ratings to hinge on capex

April 9, 2016

Dateline 2016-02-24, The Star:

Moody’s Investors Service’s review of Petroliam Nasional Bhd’s (Petronas) rating will focus on whether the management plans any reduction in its capital expenditure (capex), operating expenditure and dividends.

The ratings agency said yesterday that its review would also look into how Petronas, which is a national oil company (NOC), manages its level of borrowings.

It pointed out that Petronas (A1) has maintained a financial profile that has been strong for its rating, while the sovereign’s rating was A3 Stable.

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Dialog move a game changer?

April 1, 2016

Dateline 2016-02-10, The Star:

Now that leading local oil and gas (O&G) player Dialog Group Bhd has called off its marginal oil field exploration project, the question is: will the other local companies, which had been awarded risk sharing contracts (RSC) by Petroliam Nasional Bhd (Petronas), be doing the same?

Since 2011, Petronas had begun a process of awarding RSCs to local companies which are partnered with international players to extract hydrocarbon assets in fields which have reserves of less than 30 million barrels of oil.

But this was when oil prices were over US$90 per barrel. At current prices of around US$30 per barrel, the extraction of oil in marginal oil fields, at least in Dialog’s case, has become no longer viable.

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Petronas, Dialog abort RM3.5bil Sarawak offshore projec

March 29, 2016

Ah, now I know one reason Dialog Offshore Engineering shut down.

Dateline 2016-02-04, The Star:

Petroliam Nasional Bhd (Petronas), Dialog Group Bhd and Australia-based petroleum company Roc Oil Co Ltd have aborted a proposed project estimated to cost more than RM3bil to develop and produce petroleum off Bintulu, Sarawak.

In a filing with Bursa Malaysia, Dialog said the small field risk service contract to develop the Balai cluster fields was terminated due to the difficult business environment and persistently depressed oil price.

The oil and gas-based technical services provider said BC Petroleum Sdn Bhd — which is 32% owned by its unit Dialog D&P Sdn Bhd, 48% by Roc Oil Malaysia (Holdings) Sdn Bhd and 20% by Petronas Carigali Sdn Bhd — had ceased operation and had on Wednesday signed a termination by mutual agreement with Petronas.

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S&P says oil price revision won’t immediately impact Petronas ratings

March 18, 2016

Eventually, perhaps. I wonder how Khazanah and PETRONAS interact?

Dateline 2016-01-22, The Star:

Standard & Poor’s Ratings Services says its recent revision of its oil price assumptions won’t immediately affect the ratings outlook of Petroliam Nasional Bhd’s (Petronas).

The international ratings agency said on Friday its revisions were US$40 per barrel of Brent crude in 2016 and US$45 in 2017.

However, it stated the recent revision of its oil price assumptions would not have an immediate impact on Petronas (foreign currency A-/Stable/–; local currency A/Stable/–; axAAA/–).

“We expect Petronas to maintain its critical policy role for Malaysia, its large  direct and indirect contribution to the country’s budget, and its integral link with the Malaysian government through full state ownership,” it said.

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Malaysians brace for hard times as oil rout rocks Petronas

March 15, 2016

Come one, Exxon, Shell, and Roc Oil. Step in, all fill the shoes up. Unfortunately, IGL doesn’t have a fiduciary responsibility to bail out its clients.

Dateline 2016-01-22, the Malay Mail:

When Malaysian oil giant Petronas announced sharp spending cuts and described a dismal outlook this week, it was confirmation for millions that they will struggle to make ends meet this year amid high costs, a plunging currency and fewer jobs.

The country’s only Fortune 500 company, state-owned Petroliam Nasional Bhd drove Malaysia’s modernisation push in the last two decades that was symbolically crowned by its construction of the world’s tallest twin towers in the heart of Kuala Lumpur.

But as the oil boom turns to bust, Petronas ― and with it Southeast Asia’s third-largest economy ― is slowing down, and Malaysians are bracing for hard times. The company is one of Malaysia’s biggest employers, and accounts for nearly a third of the government’s oil and gas-related revenue.

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Petronas may retrench staff, says report

March 14, 2016

Dateline 2016-01-21, TMI:

Petroliam Nasional Bhd (Petronas) is considering retrenchments for some of its 51,000 staff as one of the options as the Malaysian state-owned oil company confronts the realities of low oil prices, the Malaysian Reserve reports.

A source with knowledge of the matter told the business daily a voluntary separation scheme (VSS) for permanent staff is being considered by the Petronas management.

On Tuesday, The Wall Street Journal reported that Petronas was planning to slash as much as RM50 billion (US$11.41 billion) in capital and operating expenses over the next four years.

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Malaysia’s Petronas to Slash $11.4 Billion in Capital, Operating Expenses

March 5, 2016

Dateline 2016-01-18, TWSJ:

Malaysia’s state oil firm, Petroliam Nasional Bhd., or Petronas, is planning to slash as much as 50 billion ringgit ($11.4 billion) in capital and operating expenditure over the next four years, according to an internal memo sent to staff by its chief executive officer.

The plan comes as the continuing rout in oil prices has hurt major oil companies world-wide, with the price of Brent crude tumbling to $28 a barrel on Friday. The slide could spell a further drop in Petronas’s revenue and earnings, as some domestic and international projects may become unprofitable.

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Petronas bracing for 3 more years of pain

February 26, 2016

Dateline 2016-01-12, TMI:

Petroliam Nasional Bhd is bracing for two to three more tough years as the Malaysian state oil company grapples with crude at an 11-year low while seeking to keep its multi-billion dollar projects on track.

Oil may average US$30 (RM132) a barrel this year in a “low-price” scenario, chief executive officer Datuk Wan Zulkiflee Wan Ariffin said in an interview yesterday.

With a capital expenditure plan of as much as RM350 billion over the next five years, he said the company’s “good” cash build-up would help it through difficult times.

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Malaysia’s Petronas set to ride another year of oil turmoi

February 7, 2016

Dateline 2016-01-05, MENAFN:

Malaysian fuel company Petronas Dagangan Bhd, the country’s top-performing stock in 2015, will focus this year on managing inventories to help cut operating costs and sustain dividend payments as it anticipates continued oil market turmoil.

Its strategy to mitigate any further decline in oil prices is similar to last year, when it slashed the number of days it holds inventory for by 30%, Managing Director Mohd Ibrahimnuddin Mohd Yunus said in a December 31 interview.

The company operates the country’s biggest network of retail stations and supplies fuel to factories, vessels and airplanes – – leaving the value of its fuel inventories vulnerable to oil price drops.

“We constantly manage our inventory at an optimal level,” Mohd Ibrahimnuddin said at his office at the Petronas twin towers in Kuala Lumpur. “At these levels, we were able to ride out crude oil prices that have dropped significantly.”

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