Petronas: Malaysia a net importer after 2010

The good news: Petronas hit record-high profit of RM46 billion ( previous year RM43 billion).The bad news: Malaysia becomes a net importer of petroleum after 2010. That’s why I always say that we are living in a “grace period”. When we have no more extra oil and gas for export, that will be the day all Malaysians have to face the real test collectively. When the Umno-led BN Government cannot depend on the money from Petronas anymore, will they still able to run this country? I have serious doubts. Petronas hits record-high profit of RM46 bil

Jun 28, 07 5:12am Malaysiakini

Petronas announced today another record net profit for the financial year to March due to higher sales volume and strong crude oil prices.The national oil company posted a net profit of RM46.4 billion against RM43.1 billion a year ago, with revenue up 10 percent to RM184.1 billion. Hassan Merican, Petronas chief executive officer, said the company reported a record performance despite a challenging environment. “The year has been a tough one for the industry … However, we managed to swim against the tide,” he told reporters at a briefing. “Our results are on par, if not better than some of the other major oil companies,” Hassan said. Oil prices remained high underpinned by global demand, particularly from China and India, but this was offset by supply disruptions in Alaska and Nigeria and geopolitical tensions in the Middle East, he said. Operating costs increased, often out of proportion with the crude price gain, he said, adding that Petronas had had to defer or even scrap some projects. Refined petroleum products was the top revenue generator at RM62.7 billion on volume of 215.9 million barrels, followed by crude oil sales worth RM45.4 billion from 192.4 million barrels. Liquefied natural gas continued to be the third largest contributor with RM28.9 billion on volume of 24.1 million tonnes. Hassan said Petronas’ international operations and exports from Malaysia grew RM10.9 billion during the year to RM141 billion or almost 77 percent of total revenue. Petronas’ total oil production rose to 1.710 million barrels a day from 1.596 million bpd the year before, with higher output from the international operations offsetting a slight decline on the domestic side. Net importer of oil in 2010 Hassan said Petronas secured four new production sharing contracts and won six new contracts abroad. The company now has 58 ventures in 22 countries. Petronas invested RM21.6 billion in fiscal year 2007 and Hassan said capital expenditure for 2008 will be higher. “Given the escalating cost environment, how can it be less?” he said. He did not give an outlook for 2008 except to say that the biggest challenge facing the oil and gas industry is the shortage of skilled personnel. Hassan also said Malaysia will become a net importer of crude oil by 2010 if domestic demand growth maintains an annual rate of 4.0 percent. “If petroleum product demand in Malaysia continues to grow at four percent per annum, the country will not be able to export its production like it used to today, meaning that petroleum product demand will exceed domestic crude production,” he said. “It doesn’t mean that we stop producing in 2010. We still continue to produce at the same level but product demand will grow ahead of domestic crude production.”