PETRONAS Posts Lower Profit Amid Market Headwinds, Strengthens Resilience to Deliver Long-Term Value

Key Financial Highlights (RM Bil)

Against 31 December 2024

KUALA LUMPUR, 27 February 2026 – For the financial year ended 31 December 2025, PETRONAS recorded lower revenue of RM266.1 billion mainly due to lower average realised prices, lower sales volume, foreign exchange impact, and the divestment of Engen Group.

Navigating an increasingly challenging macro environment, PETRONAS remains committed to reinforcing its resilience and advancing value creation through disciplined growth.

FY2025 (Analysis against FY2024)

• Revenue stood at RM266.1 billion, a decrease of 17 per cent from the previous year.
• Profit After Tax (PAT) decreased by 18 per cent to RM45.4 billion in tandem with lower revenue, partially offset by lower tax expenses.
• The Group recorded lower Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of RM103.0 billion, 10 per cent lower than the previous year, in line with lower profits.
• Cash Flows from Operating Activities (CFFO) stood at RM85.2 billion aligned with lower EBITDA.
• Capital Investments (CAPEX) stood at RM41.6 billion, mainly from Upstream development and production activities. Capital allocation prioritised high-value and advantaged projects, focusing on early monetisation and continued portfolio high grading.
• Total assets strengthened to RM775.0 billion.
• Shareholders’ equity decreased to RM448.3 billion, mainly reflecting dividends declared to shareholders and foreign exchange movements, partially offset by profits during the period.

Second Half FY2025 (Analysis against Second Half FY2024)

• Revenue declined to RM133.6 billion, in line with lower average realised prices largely from liquefied natural gas (LNG), crude oil and condensates, and petroleum products, as well as foreign exchange impact.
• PAT declined by 15 per cent to RM19.2 billion, in line with lower revenue and net impairment losses on assets.
• EBITDA decreased by 3 per cent to RM48.6 billion, in line with lower profitability.

PETRONAS President and Group Chief Executive Officer, Tan Sri Tengku Muhammad Taufik said:

“PETRONAS' resilient performance for the year 2025 was delivered against a backdrop of prolonged volatility in a persistently challenging operating environment. The financial results are a testament to the Group's commitment to prudent financial management and disciplined growth.

In a year beset by market uncertainty and elevated costs, PETRONAS focused on strengthening the resilience of our portfolio through strategic partnerships, portfolio high grading and other value-accretive undertakings. All of our efforts aim to ensure that this institution will remain strategically positioned to continue delivering value to our shareholders and stakeholders into the long term.

Moving forward, geopolitical headwinds in the industry are expected to persist. To contend with these developments, PETRONAS will double down on measures to reinforce our portfolio and financial strength – paving the way for this institution to continue delivering energy and solutions safely, reliably and responsibly to those we serve.”

Outlook

Heightened market volatility, persistent geopolitical tensions and evolving regulatory landscapes shaped the 2025 operating environment, exerting downward pressure on Brent price to sub‑USD70/bbl level, while supply chain challenges further compressed margins. Against this backdrop, PETRONAS leveraged the strength of its integrated value chain to generate and preserve value through disciplined capital allocation, operational and commercial excellence, structural cost optimisation and active portfolio high‑grading.

PETRONAS is progressing in its strategic transformation by delivering advantaged hydrocarbons with lower costs and emissions, while strengthening differentiated business and partnership models. This includes embarking on its first joint venture with ENI under a satellite business model, unlocking value and supporting long‑term growth. The Group also continues to diversify its LNG portfolio by securing additional long‑term LNG supply and successfully delivering LNG cargoes from its newly commissioned LNG Canada facility, reinforcing its position as a reliable and trusted global LNG partner.

Looking ahead to 2026, PETRONAS remains focused on scaling value accretive energy investments and lower‑carbon solutions to advance its energy transition agenda. The Group is committed to reliably address customers’ energy needs, while remaining firmly anchored to its Net Zero Carbon Emissions ambition. Progress across carbon capture and storage initiatives, alongside growth in specialty chemicals, bio‑refining and cleaner energy solutions, underpins long‑term financial strength and sustainable value creation.

Reference

Click here to view PETRONAS Group Financial Report

Click here to view PETRONAS Group Financial Operational Report

Refer Appendix for Sustainability and Operational Highlights

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APPENDIX

Sustainability Highlights

Greenhouse Gas (GHG) Emissions

PETRONAS remains committed to its Net Zero Carbon Emissions by 2050 Pathway, with this ambition underpinned by a clearly defined GHG emissions reduction target and specific methane targets.

In 2025, PETRONAS recorded a 2.2 per cent increase in groupwide GHG emissions at 56.95 million tonnes of carbon dioxide equivalent (Mil tCO₂e) for assets under operational control (2024: 55.7 Mil tCO₂e). The increase in emissions was mainly driven by operational transitions during the year, including the completion of operatorship transfers for two Production Sharing Contracts (PSCs). The Kasawari field’s first full year of operations contributed temporary start-up flaring and higher fuel gas consumption as the newly commissioned asset was stabilised.

Despite this, PETRONAS achieved a 72 per cent reduction in methane emissions across the groupwide natural gas value chain, exceeding the stated target of 50 per cent. Although emissions have increased, PETRONAS maintains a strong commitment to ongoing enhancements in emissions management and is actively undertaking initiatives to achieve its stated targets.

Health, Safety and Environment (HSE)

The Lost Time Injury Frequency (LTIF) increased to 0.15 per million manhours in 2025 from 0.10 per million manhours in 2024. The increase is due to a broader reporting scope and reflects changes in business activities.

We remain committed to strengthening our HSE practices to further reduce the LTIF.

PETRONAS’ Social Impact Investments

In 2025, PETRONAS invested over RM600 million in targeted social impact programmes that impacted more than 2.5 million lives. Our efforts are anchored on three key areas that align our resources with value creation under our Just Transition approach - Powering Knowledge (Education), Uplifting Lives (Community Well-being and Development) and Planting Tomorrow (Environment).

Operational Highlights

Upstream

• Recorded an average total daily production of 2,423 thousand barrels of oil equivalent (boe) per day in 2025, lower than 2,451 thousand boe per day in 2024. This was mainly due to portfolio high-grading activities and partially offset by improved operations and higher gas availability supporting stronger demand in some states.
• Achieved first hydrocarbon for 26 projects, 28 Final Investment Decisions (FIDs) and 12 exploration discoveries in Malaysia and overseas. In Malaysia, the Lebah Emas discovery unlocked new hydrocarbon-bearing intervals through a scaled-up clustered exploration approach. Internationally, the Kelidang Cluster Development achieved FID as Brunei’s first ultra-deepwater gas project and declared commerciality for Slonea Field of Suriname’s Block 52 discovery.
• Expanded operatorship in Malaysia through three new PSCs, which are SB306A, SB306B and SB412.
• Embarked on PETRONAS’ first-ever satellite business model to enable energy partnership in unlocking regional significant opportunities. In parallel, the Group strengthened its international footprint via new partnerships namely, Block 9 and 10 PSCs in Suriname; Block S4 PSC in Guyana; Key Principles Agreement (KPA) for the North Sumatra Offshore PSC opportunities for Vestigo Petroleum Sdn Bhd (VPSB)’s international growth; and two Memoranda of Understanding (MoUs) for exploration collaboration in the Middle East and Southeast Asia.
• Scaled Artificial Intelligence (AI) and engineering solutions through seven strategic technology MoUs and agreements such as TriCiptaAI, Upstream Exploration and Development Modelling (UEDM) and Zero Emission Unconventional Power Station (ZEUS).
• Entered a KPA for technical studies and Front-End Engineering Design (FEED) for the Duyong offshore carbon storage site and secured Malaysia’s first offshore assessment Carbon Capture and Storage (CCS) permit by the MyCCUS Agency for the Duyong field. The permit grants PETRONAS the exclusive rights to conduct comprehensive offshore geological assessments over the field. These efforts demonstrate Malaysia’s strong commitment to become a regional CCS hub and to actively pursue volumes from neighbouring countries such as Singapore, Japan, and South Korea to support decarbonisation in the Asia-Pacific.
• The Malaysia Bid Round 2025 launched on 17 February 2025 offered five Exploration blocks and three Discovered Resource Opportunities (DRO) clusters to potential investors, reinforcing Malaysia’s commitment to expanding high‑value upstream opportunities.
• Awarded three PSCs for the DRO clusters offered in Malaysia Bid Round 2025.
• Completed the Mutiara Cluster and SB505 3D seismic work, marking a breakthrough in unlocking the frontier potential of the Sandakan Basin.
• Collaborated with Sabah Energy Corporation Sdn. Bhd. (SEC) and Esteel Enterprise Sabah Sdn. Bhd. for the supply of an additional 104 million standard cubic feet per day (MMscfd) of natural gas to support Sabah’s industrial and energy needs, supporting its steel production operations and efforts to adopt greener and more sustainable practices.

Gas & Maritime Business

• Overall Equipment Effectiveness (OEE) for Gas and Maritime Business stood at 90.50 per cent across all business segments.
• Delivered a total of 563 LNG cargoes in 2025 to customers around the world from PETRONAS’ portfolio.
• LNG Canada has successfully commissioned Train 1 and 2, marking a key advancement towards full Phase 1 completion.
• Secured long-term LNG supply to CNOOC for 1 million tonnes per annum (MTPA), strengthening our role as a trusted partner in supporting Asia’s transition to lower carbon energy.
• Signed Sales and Purchase Agreements (SPAs) for LNG supply from Venture Global (CP2 LNG Phase 1), Woodside LNG, and Pembina (Cedar LNG) for 3 MTPA collectively, fortifying portfolio diversification and growth, whilst capturing incremental value via Asset‑Backed LNG Trading.
• Entered long-term partnership with MidOcean Energy as a 20 per cent equity partner in both North Montney Upstream Joint Venture (NMJV) and North Montney LNG Limited Partnership (NMLLP), unlocking additional value through shared opportunities in Canada.
• Signed SPA with SMJ Energy for 25 per cent equity participation in upcoming third FLNG, further reinforcing PETRONAS’ long-standing partnership with the Sabah State Government.
• Completed 2,171 MMscfd of average sales gas volume delivered in Peninsular Malaysia.
• Secured the renewal of Malaysia’s Regulatory Period 3 (RP3) for gas transportation & regasification services at competitive infrastructure tariffs.
• Successfully delivered seven new-generation LNG carriers in 2025 with consortium partners as part of QatarEnergy LNG expansion programme, equipped with advanced system that position the vessels among the most efficient & sustainable LNG carriers in operation.
• Awarded the Floating Production Unit (FPU) Kelidang for Natural Gas Development Project in Brunei, marking MISC’s strategic entry into Brunei’s offshore oil and gas market.

Downstream

• Downstream Overall Equipment Effectiveness (OEE) for FY2025 improved to 92.6 per cent, from 91.2 per cent in FY2024.
• Total marketing sales volume stood at 17.95 billion litres, with PETRONAS Dagangan Berhad (PDB) achieving its record-high annual sales volume of 17.1 billion litres, driven by higher jet fuel uplift and increased Retail Mogas from the BUDI95 programme resulting from swift and seamless integration of Setel application upon the roll-out of BUDI95. PETRONAS Lubricants International (PLI) also delivered higher sales volume, underpinned by increased base oil trading and stronger lubricant performance. Collectively, this helped to partially mitigate the overall decline in petroleum product sales volume following the divestment of the Engen Group in 2024.
• The Chemicals business also recorded a higher overall sales volume, however, offset by narrowing spreads and continued market oversupply.
• Delivered Malaysia’s first locally blended Sustainable Aviation Fuel (SAF) to Kuala Lumpur International Airport for Malaysia Aviation Group, establishing its in-house capability and readiness to provide continuous, scalable supply in Malaysia.
• Together with Enilive S.p.A. and Euglena Co., Ltd., PETRONAS marked the groundbreaking of its first biorefinery in Pengerang, Johor, with an annual processing capacity of 650,000 tonnes of renewable feedstock and projected to produce Sustainable Aviation Fuel (SAF), Hydrogenated Vegetable Oil (HVO), as well as bio-naphtha to cater to the growing demands for cleaner energy solutions.
• PETRONAS Chemicals Group Berhad introduced Emfinity® Esters, a new range of plant-based, biodegradable emollients for personal care applications, expanding its eco-friendly specialty offerings.

Gentari Sdn Bhd

Renewables

• Secured a cumulative global renewable energy and energy storage capacity of 9.1 gigawatts (GW), installed and under construction, as of 31 December 2025. Of which, 4.2 GW is installed capacity, cementing its position as a credible, large-scale clean energy player across the core markets of Malaysia, India, and Australia.
• Shortlisted to develop a 99.99 MWac Large-Scale Solar 5 (LSS5) project and progressed towards construction commencement, reinforcing domestic delivery capabilities.
• Entered into a collaboration agreement with Gamuda to develop up to 1.5 GW of solar capacity to power strategic hyperscale data centres.
• Commissioned India’s first on-site hybrid, round-the-clock renewables project with long-term partner UltraTech Cement, delivering 7.5 MW of clean energy through integrated solar, wind and battery storage in Gujarat.
• Signed a Power Purchase Agreement (PPA) with Amazon Web Services (AWS) for an 80 MW wind power project in Tamil Nadu.
• Broke ground on the Maryvale Solar & Energy Storage project in Australia, paving the way for dispatchable clean energy in New South Wales.

Green Mobility

• Expanded regional electric vehicle (EV) charging network to 1,181 charging points, including 515 DC fast chargers, across Malaysia, Thailand and India.
• Enabled seamless access through the Gentari Go app to approximately 10,000 EV charging points across Malaysia, Thailand, Singapore and India, establishing one of the largest interoperable EV charging networks in the region.
• Awarded the 2025 Charging Point Operator of the Year (Malaysia) by the Malaysia EV Owners Club (MYEVOC), recognising excellence in location coverage and accessibility.

Hydrogen

• Matured hydrogen opportunities totalling 175 kilo tonnes per annum (KTPA).
• Signed the first long-term SPA with Uniper SE, via associate company AM Green Ammonia, for the supply of up to 500 KTPA of Renewable Fuels of Non-Biological Origin (RFNBO)-compliant green ammonia from a 1 MTPA facility in Kakinada, India, marking its participation in Europe’s decarbonisation pathway.