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Malaysia's Petronas posts $704 mln Q4 net loss, confirms spending cuts

Published 2016-02-29, 04:30 a/m
© Reuters. Malaysia's Petronas posts $704 mln Q4 net loss, confirms spending cuts
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KUALA LUMPUR, Feb 29 (Reuters) - Malaysia's Petroliam
Nasional Bhd PETR.UL , or Petronas, reported a fourth-quarter
net loss on Monday and announced spending cuts for the next few
years, as the state oil company braces for a prolonged period of
low oil prices.
Petronas reported a net loss of 2.96 billion ringgit ($704.3
million) for the October-December period, compared with a loss
of 7.3 billion ringgit a year ago. The company attributed the
net loss to impairment of assets caused by low oil prices.
Revenue for the quarter was 60.1 billion ringgit, down
nearly a quarter from 79.4 billion ringgit for the corresponding
period a year ago.
The 70 percent slump in crude oil prices LCOc1 since
mid-2014 has been squeezing the finances of unlisted Petronas,
which accounts for about a third of the Malaysian government's
oil and gas revenue.
"2016 and 2017 will continue to be challenging for
Petronas," Petronas President and Group CEO Wan Zulkiflee Wan
Ariffin said at a press conference to announce the results.
"We are planning our projections based on Brent price at $30
for this year, and must brace ourselves for the corresponding
impact to our financial performance."
Petronas also confirmed plans to cut spending by 50 billion
ringgit over the next four years, as earlier announced in an
internal memo to its staff.
It said the company would start with 15-20 billion ringgit
cuts in 2016. But it added that it would stick to its commitment
of paying a dividend of 16 billion ringgit to the government for
2016.
($1 = 4.2030 ringgit)

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