President and Group Chief Executive Officer’s Letter
Tan Sri Tengku Muhammad Taufik
Dear Stakeholders,
In 2025, PETRONAS was steadfast in our focus on delivering long-term value and energy security amid unrelenting volatility throughout the course of the year. This firm commitment continued to steer PETRONAS in discharging our critical role as a trusted energy and solutions partner, both to Malaysia as its national oil company and to our customers around the world.
Uncertainty has undeniably become a defining feature in the energy industry today. In anticipating more headwinds in the macro environment, PETRONAS’ priority in 2025 was to build resilience through projects and partnerships that strengthen operational reliability, accelerate value delivery, and diversify our supply nodes as well as revenue streams.
As you read this report, the escalating conflict in West Asia continues to fundamentally shift the global economic and geopolitical order. This has irrevocably impacted financial markets, trade and logistics, and importantly, the world’s entire energy system.
I am pleased to report that PETRONAS has put in place strong foundations through our achievements in 2025. Moving forward, the Group will continue working with governments, businesses and partners to ensure that energy continues to flow reliably and responsibly.
Safety Above All
PETRONAS’ results in 2025 were made possible by the contribution of our dedicated employees across the Group, who prioritised safety in all our undertakings. In delivering these results, PETRONAS recorded zero fatalities in 2025. However, the Group also saw a 40 per cent increase in Lost Time Injury Frequency. In tackling this, PETRONAS will continue reinforcing a culture of safety and take measures to create a safer environment for our colleagues, partners and in locations where we operate.
Regrettably, one major fire incident occurred at the Putra Heights gas pipeline in Selangor, Malaysia. In the immediate aftermath of this tragic incident, PETRONAS and its subsidiary, PETRONAS Gas Berhad, worked closely together with the relevant government authorities on a rapid and coordinated emergency response to stabilise the situation.
Efforts in this regard included fire containment, public safety, assistance to those affected and ensuring the security of gas supply. PETRONAS remains fully committed to our ongoing cooperation with all stakeholders involved in strengthening the safety and reliability of all our facilities.
Delivering Value
In navigating the market headwinds that are increasingly difficult to predict, PETRONAS took an approach of prudent financial management and disciplined capital allocation to preserve long-term value.
Guided by this, PETRONAS delivered a resilient financial performance in 2025, with a Profit After Tax of RM45.4 billion on the back of RM266.1 billion in revenue. Earnings before Interest, Taxes, Depreciation and Amortisation stood at RM103.0 billion for the year under review.
PETRONAS maintained a robust financial position, supported by strong operating cash flows and disciplined cost management. Cash Flows from Operations stood at RM85.2 billion, ensuring the Group retained robust capacity to fund operational requirements, capital investments, debt obligations and shareholder returns.
Total assets increased to RM775.0 billion, while capital expenditure was at RM41.6 billion, of which 60 per cent had been invested in Malaysia in support of national energy security and the local Oil and Gas Services and Equipment sector.
Building Resilience
PETRONAS’ financial performance in the year under review is testament to the clear vision and continued relevance of our Energy Transition Strategy, which focused on strengthening Core Business, accelerating value-accretive growth in New Business, while responsibly managing emissions across the Group. Since its introduction in 2022, this strategy has steered the Group towards continued value delivery and energy security.
In 2025, some of PETRONAS’ achievements in this regard include:
- Diversified our LNG supply with the commissioning of LNG Canada Trains 1 and 2 in British Columbia. This new heartland complements the PETRONAS LNG Complex in Bintulu, Malaysia and our two Floating LNG facilities, further establishing our market leadership in LNG.
- Expanded our international upstream portfolio through Production Sharing Contracts (PSCs) in Suriname and Guyana, Key Principles Agreement for the North Sumatra Offshore PSC opportunities through Vestigo, two Memoranda of Understanding for exploration collaboration in the Middle East and Southeast Asia, and Final Investment Decision for the Kelidang Cluster Development in Brunei.
- Positioned the Group for more efficient upstream development in Southeast Asia through PETRONAS’ first satellite business model partnership with Eni. This strategic collaboration entailed the consolidation of selected upstream assets to strengthen capital efficiency and accelerate project development cycles.
- Strengthened our bio-based value chain with the groundbreaking for PETRONAS’ first biorefinery at the Pengerang Integrated Complex in Johor, Malaysia. This will pave the way for us to deliver Sustainable Aviation Fuel (SAF), Hydrogenated Vegetable Oil and bio-naphtha.
- Advanced progress in regional interconnectivity through a Joint Development Agreement among MY Energy Consortium (established between PETRONAS and Malaysian utilities player, Tenaga Nasional), PetroVietnam Technical Services Corporation and Sembcorp Utilities to export renewable electricity from Vietnam to Singapore and Malaysia.
- Expanded our suite of lower-carbon energy and solutions offering by achieving 9.1 gigawatts of installed and under-construction renewables capacity; 1,181 electric vehicles charging points across Malaysia, Thailand and India; and signed the first long term sale and purchase agreement with Uniper SE for the supply of up to 500 kilotonnes per annum of Renewable Fuels of Non-Biological Origin-compliant green ammonia.
- Enhanced our in-house capabilities to support emissions reduction in aviation through the delivery of Malaysia’s first locally blended SAF to Kuala Lumpur International Airport.
- Achieved an 80 per cent reduction in methane emissions across the Group-wide natural gas value chain, exceeding our target of 50 per cent reduction by 2025.
Looking ahead
In 2026, PETRONAS will continue to ramp up efforts that will better position the Group to deliver consistently and reliably to our stakeholders and customers. As the operating environment is being jarringly reshaped by persistent geopolitical and market pressures, PETRONAS has acted proactively to put in place measures to strengthen the resilience of our business and portfolio.
Moving forward, we will intensify our focus on value-accretive undertakings and pursue strategic partnerships to accelerate value delivery, even as we diversify supply pathways and vigorously pursue improved efficiency while responsibly managing emissions.
In this opportunity, I would like to extend my heartfelt appreciation to the Chairman, Tan Sri Dato’ Seri Mohd Bakke Salleh, and the PETRONAS Board of Directors for the stewardship and support extended, as well as to the Federal and State Governments in Malaysia, the host governments across our global operations and partners for the trust placed in PETRONAS.
Last but certainly not least, I wish to put on record my sincere thanks to all the employees of PETRONAS, whose unshakeable fortitude, resilience and invaluable contributions were crucial in delivering the Group’s 2025 achievements.
As we look ahead, PETRONAS remains resolute in fulfilling our purpose by growing our role as an energy and solutions provider, contributing towards economic growth and ensuring the energy security of those we serve across the globe.
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