by ALIFAH ZAINUDDIN / pic by MUHD AMIN NAHARUL

PETROLIAM Nasional Bhd (Petronas) announced a net profit of RM40.5 billion for the full financial year of 2019, a 27% drop against the year before largely dragged by lower crude oil prices and substantial impairments of its assets.

Malaysia’s largest company based on profit registered a 4% drop in revenue to RM240.3billion for the whole of 2019 but the results are marred by a RM7.3 billion net impairment.

The national oil giant said net profit for the October through December 2019 slumped 71% to RM4.1 billion from RM14.3 billion in the same period of 2018 as depressed prices of key petroleum products hit the state-owned company.

Turnover for the quarter fell 8% to RM64 billion from RM69.9 billion in the same quarter the previous year.

“Looking ahead, market volatility is expected to persist. We will remain steadfast in executing our strategies and sustaining our operational efficiencies while maintaining fiscal discipline,” Petronas group president and CEO Tan Sri Wan Zulkiflee Wan Ariffin told reporters in Kuala Lumpur.

The company said it is budgeting for an average oil price in the high US$50 (RM211) range per barrel in 2020. 

Despite another challenging year, Petronas said it has no plans to up its capital expenditure — capping it at RM50 billion. However, Wan Zulkiflee said the domestic market will see a higher allocation of 10% in 2020 with an amount between RM26 billion and RM28 billion.

Petronas, a major contributor to state’s coffers, said it is also planning a RM24 billion dividend payment this year to the government. The company paid RM54 billion in 2019, which included a special dividend of RM30 billion.