PETRONAS Records Lower Profit Amid a Challenging Environment, Pursues Portfolio Resilience for Future Growth

Key Financial Highlights (RM Bil)

Against 31 December 2024

KUALA LUMPUR, 29 August 2025 – PETRONAS recorded a revenue of RM132.6 billion for the first half of financial year ended 30 June 2025 (1H 2025), compared to RM173.6 billion in the corresponding period last year. The decline was primarily due to impact from discontinued operations from the divestment of the Engen Group in May 2024, unfavourable foreign exchange as well as lower average realised prices from petroleum products, crude oil and condensates following the downward trend in benchmark prices.

In tandem with lower revenue, the Group’s Profit After Tax (PAT) of RM26.2 billion decreased by 19 per cent from RM32.4 billion.

The Group recorded Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of RM54.4 billion, lower by 15 per cent in line with lower profits.

Cash Flows from Operating Activities (CFFO) stood at RM48.1 billion, a decrease by RM6.7 billion, primarily driven by lower EBITDA and partially negated by taxes paid.

Total assets increased to RM780.7 billion as at 30 June 2025 against RM766.7 billion as at 31 December 2024. The increase was mainly due to net proceeds from the issuance of notes in the USD bond market.

Shareholders’ equity was RM437.1 billion, lower by RM14.1 billion, mainly reflecting dividends declared to shareholders and foreign exchange movements, partially offset by profits during the period.

PETRONAS President and Group CEO, Tan Sri Tengku Muhammad Taufik said:

“PETRONAS remains unwavering in our commitment to strengthen our business and portfolio resilience for long-term growth amid an increasingly challenging macro environment in the first half of 2025. Through the focused execution of our Energy Transition Strategy, portfolio optimisation and prudent capital management, we are expediting a critical transformation to continue delivering energy safely, reliably and sustainably to those we serve.

As the industry contends with rising costs and declining benchmark prices putting downward pressure on margins, PETRONAS will double down on our efforts in commercial and operational excellence, portfolio high-grading through strategic partnerships, and disciplined financial stewardship. These measures are intended to put PETRONAS in a position to further enhance efficiency and build a strong foundation for future growth.

Despite increasingly daunting headwinds, PETRONAS is firmly committed to continue delivering value to our shareholders and stakeholders as well as contribute to building a robust and secure energy system for a sustainable future.”

Outlook

PETRONAS expects oil prices to remain subdued due to persistent geopolitical tensions, macroeconomic uncertainties, evolving regulatory landscapes and accelerated unwinding of OPEC+’s production cuts which will continue to reshape global energy dynamics and trade flows.

In navigating the complex global market and operational challenges, the Group is undergoing a strategic transformation with sharpened focus on portfolio high-grading and strategic partnerships, as well as enhanced productivity and cost efficiency. These efforts are advancing PETRONAS’ position as an integrated energy company committed to delivering safe, reliable, and sustainable solutions while preserving financial strength and long-term resilience.

For energy security, PETRONAS is progressing towards delivering advantaged hydrocarbons with lower cost and emissions. This is underpinned by various upstream discoveries and developments particularly in Malaysia, Suriname, Indonesia and Angola. The successful shipment of its first LNG cargo from the newly commissioned LNG Canada facility reinforces PETRONAS’ position as a trusted global LNG supplier and marks a strategic expansion of its supply footprint. In parallel, the Group continues to strengthen its integrated low-carbon value chain through targeted investments in solar energy and energy solutions hubs.

Reference

Click here to view PETRONAS Group Financial Report

Refer Appendix for Sustainability & Social Impact and Operational Highlights

APPENDIX

Sustainability Highlights

Greenhouse Gas (GHG) Emissions

During 1H 2025, PETRONAS recorded a 1.5% increase in Groupwide GHG emissions at 27.3 million tonnes of carbon dioxide equivalent (Mil tCO₂e) for assets under operational control (2024: 26.9 Mil tCO₂e). This was primarily due to operational transitions, including the completion of operatorship transfers for two Production Sharing Contracts (PSCs). PETRONAS remains committed to continuous improvement in emissions management and is actively implementing measures in support of stated targets.

Health, Safety and Environment (HSE)  

Lost Time Injury Frequency (per million man-hours) recorded as of 1H 2025 is 0.12 per million man-hours which is an increase by 9 per cent (1H 2024: LTIF 0.11 per million man-hours).

PETRONAS’ Social Impact Investments 

As of 1H 2025, PETRONAS contributed over RM240 million to social impact programmes. These contributions have been delivered through 53 initiatives, focusing on the priority themes of: Powering Knowledge, which provides access to quality education and capacity building in science, technology, engineering and mathematics (STEM) and technical and vocational education and training (TVET); Uplifting Lives, which supports access to basic needs and entrepreneurship development; and Planting Tomorrow, which promotes biodiversity conservation, environmental education, and climate risk management. 

OPERATIONAL HIGHLIGHTS

Upstream

• Recorded average total daily production of 2,403 thousand barrels of oil equivalent (boe) per day in 1H 2025, lower than 2,482 thousand boe per day recorded for the same period in 2024, mainly contributed by lower gas production from domestic operations and lower liquid production from the international portfolio.
• Made two successful exploration discoveries in Malaysia at Lebah Emas-1ST1 well in Block PM6/12 and Megah-1 well in Deepwater Block 3K. These discoveries expand Malaysia’s resource base and strengthen its domestic oil portfolio.
• Achieved first hydrocarbon production for six projects in Malaysia and three at our international operations. Secured 12 final investment decisions (FID), nine in Malaysia and three overseas.
• Awarded two PSCs, namely Mutiara and Temaris Clusters under Malaysia Bid Round 2025. Upstream also continued to expand its global portfolio with three PSCs, namely the Serpang and Binaiya blocks in Indonesia, Block 66 in Suriname, as well as a 25-year extension of the Production Sharing Agreement (PSA) for Block I in Turkmenistan.
• Pursued portfolio resilience through strategic partnerships:
  • Two Farm-Out Agreements (FOAs) and a Strategic Cooperation Agreement (SCA) with TotalEnergies to accelerate deepwater exploration and subsequent monetisation in East Malaysia and Indonesia.  
  • A Joint Venture Framework Agreement (JVFA) with Eni to pursue regional high-impact opportunities in Malaysia and Indonesia.
• Achieved significant progress in key emissions reduction and decarbonisation initiatives with more than 80% of oil facilities achieving Zero Routine Flaring (ZRF) in both Malaysia and internationally, and advanced Carbon Capture and Storage (CCS) with the initiation of Front-End Engineering Design (FEED) phase for the Southern Hub in collaboration with Mitsui & Co. and TotalEnergies.
• Bolstered operational excellence through 15 strategic technology and digital partnerships with global firms like Beicip-Franlab, AWS and Microsoft for AI, data analytics, and high-performance computing solutions, 11 MoUs with OGSE partners such as Muhibbah Engineering and Malaysia Marine and Heavy Engineering Holdings, and Technical Evaluation Agreements (TEAs) to unlock frontier basins in Peninsular Malaysia.

Gas & Maritime Business

• Overall Equipment Effectiveness (OEE) for Gas and Maritime Business stood at 88.1 per cent across all business segments.
• Delivered 13.13 MMT (202 BCe) of liquefied natural gas (LNG) to customers across the globe from its assets in Malaysia, out of which:
  • 11.77 MMT (181 BCe) LNG cargoes from the PETRONAS LNG Complex in Bintulu.
  • 1.36 MMT (21 BCe) LNG cargoes from PETRONAS’ Floating LNG facilities, PFLNG Satu and PFLNG Dua.
• Completed 2,130 MMscfd of average sales gas volume delivered in Peninsular Malaysia.
• Signed 2 contracts for vessel newbuilds which will be added to the existing portfolio of 104 LNG, Ethane, Petroleum and Product vessels under the Maritime business.
• Marked a major milestone with successful sail away of 1st cargo for LNG Canada, diversifying our LNG supply nodes offering new direct and efficient shipping corridor to key North Asian markets. 
• Signed an SPA with Commonwealth LNG for the supply of 1 MTPA LNG to increase 3rd party offtake, serving Atlantic facing markets.
• Achieved FID for a 120MW-Power Plant located in Labuan to enhance domestic energy security.
• Signed long-term Time Charter Parties (TCP) with PTT Public Company Limited (PTT) for 2 newbuild Very Large Ethane Carriers (VLECs).
• Signed an agreement with US-based Fleetzero to develop World’s Longest-Range hybrid electric vessel.
• Formed a strategic JV, Jules Nautica Sdn Bhd to build and own liquefied carbon dioxide (LCO₂) carriers, contributing to the development of the CCS value chain.

Downstream

• Downstream recorded an improved OEE of 91.1 per cent compared to 88.7 per cent in 1H 2024.
• Overall marketing volume stood at 8.71bil litres, comparable to 1H 2024 at 8.76bil litres. Chemicals business recorded a higher overall sales volume attributed to higher volume from strategic sourcing and Sarawak Petchem.
• PETRONAS Chemicals Group Berhad Specialty Chemicals Division inaugurated a new application and development centre in Shanghai, China, to enhance technical support for customers and support business growth in the Asian market.
• PETRONAS Dagangan Berhad, through its subsidiary Setel Ventures Sdn Bhd formalised a strategic partnership with TNG Digital Sdn Bhd to enable fuelling and payments at the pump via TNG eWallet. Available at over 1,000 PETRONAS stations nationwide, this integration brings Setel’s proprietary pump-and-pay technology to one of Malaysia’s largest digital wallets, accessible through the ‘PETRONAS via Setel’ mini programme within the TNG eWallet.
• PETRONAS Lubricants (India) Pvt Ltd (PLIPL), a subsidiary of PETRONAS Lubricants International, secured the Aftermarket Service Fill contract with Mahindra & Mahindra Ltd, strengthening PLIPL's presence and commitment to high-performance OEM-aligned solutions in India.

Gentari Sdn Bhd

Renewables

• Achieved a cumulative installed and under construction capacity of 8.4 GW as of 1H 2025, of which 4.1 GW is installed capacity.
• Progressed towards a regionally integrated ASEAN Power Grid with the signing of a landmark tripartite Joint Development Agreement to export renewable electricity from Vietnam to Malaysia and Singapore.
• Advanced Malaysia’s renewable energy goals through the signing of a Power Purchase Agreement (PPA) for a 4.3 MW solar project in partnership with Telekom Malaysia.
• Delivered first power from the Hai Long Offshore Wind Project to Taipower’s grid, marking a significant step for Gentari as an emerging offshore wind player.

Green Mobility

• Established a network of 1,110 charging points across Malaysia, Thailand and India as of 30 June 2025.
• Enabled cross-border electric vehicle (EV) charger roaming across Malaysia, Thailand and India via Gentari Go, providing access to over 5,000 chargers, one of the largest EV charging networks in the region.
• Received the Excellence in Sustainability Partnership Award at the Mastercard Malaysia Customer Forum 2025, recognising Gentari’s collaboration with Mastercard in making EV charging more accessible, rewarding, and environmentally conscious through seamless digital solutions and co-branded solutions.

Hydrogen

Matured 175 kilo tonnes per annum (KTPA) of hydrogen opportunities through strategic collaborations and project milestones across Asia and Europe.