PETRONAS the BLACKGOLD company in oil and gas business

Petronas Q2 net profit up 53% at RM18bil

2011-12-06T09:43:00.000+08:00

By DANIEL KHOO
danielkhoo@thestar.com.my

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) posted a 53.8% jump in net profit to RM18.3bil for its second quarter ended Sept 30, 2011 from RM11.9bil a year ago due to higher prices across its product range. However, the impact of the better prices was partially offset by the stronger ringgit against the US dollar.

The second-quarter revenue also increased by 26% to RM71.8bil from RM57bil previously.

Dividends paid to the Government amounted to RM21bil year-to-date, which is about half of Petronas' year-to-date net profit totalling RM40bil. Dividends paid by Petronas will be capped at 30% of its net profit in the financial year ending Dec 31, 2013 (FY13) after an agreement with the latter earlier this year.
Ratilal: ‘We have a strong balance sheet.’

“For this calendar year we are (expecting) to pay a total of RM30bil to the Government. That amounts to around 50% of Petronas' profits. Going forward, we have to spend a lot on capital expenditure (capex). We have to find the balance between capex and paying out dividends,” Petronas executive vice president for finance Datuk George Ratilal said in a presentation of its financial performance yesterday.

Petronas expects to rake in RM70bil to RM75bil in profits before tax by the year-end.

The national oil company said its overall performance had improved as reflected in the higher return on average capital employed of 23.6% in the year to Sept 30 from 17.5% in previously.

“We have a strong balance sheet,” said Ratilal. Petronas said in the media presentation that its balance sheet remained robust with total assets growing by 7.6% quarter-on-quarter to RM472.4bil with total debt/total assets ratio remaining at 0.11 times.

It said its year-on-year cash from operations rose 61% to RM47.4bil compared with the same period last year due to higher earnings while year-on-year capital expenditure spending rose by 43% to RM24bil.

Petronas had earlier announced that it was changing its financial year-end from March 31 to Dec 31, which would mean the company would have only a nine months in FY11.

President and CEO Datuk Shamsul Azhar Abbas said he remained cautious on the global economy moving forward and that current oil prices of above US$100 remained “too strong” for the fragile world economy.

He expected the world economy to deteriorate further due to the dire economic situation in the West and weakening economic indicators in China.

“We will not be surprised if the second recession comes next year. If you were to ask me what would be the projection of crude oil prices next year, we maintain it is going to be in the range of US$85 to US$87 per barrel,” Shamsul said, explaining later that this was the price range used for Petronas' forecast for 2012 as well.

On the international front, Shamsul said the company was “taking a hit” on gas production in Egypt and Sudan due to political uprisings in these countries. It is also exploring opportunities in Myanmar, where it already has a local partner, although negotiations are still at the early stages.

Petronas also said it was exploring business opportunities in Japan after the Fukushima nuclear incident there, which would increase demand for power generation from non-nuclear sources.

PChem may have broken its uptrend line at RM7.10. | i3investor.com

2011-06-08T19:57:00.000+08:00

PChem may have broken its uptrend line at RM7.10.

#Flash* Petronas FY net profit up 50% to US$17.46b, plans RM300b capex | i3investor.com

2011-06-08T19:54:00.000+08:00

#Flash* Petronas FY net profit up 50% to US$17.46b, plans RM300b capex | i3investor.com

Petronas Chem rises on CIMB estimates

2011-03-29T12:56:00.000+08:00

Petronas Chemicals Group Bhd climbed to a record in Kuala Lumpur trading after CIMB Investment Bank Bhd raised its share estimate on its “superior” growth prospects, bolstered by higher margins.

The stock climbed 1.6 per cent to RM6.94 at 3:41 p.m. The stock has risen 26 per cent this quarter, set to be the second-biggest gainer on the benchmark stock index. The share estimate was raised to RM10 from RM7.25, Terence Wong, an analyst at CIMB, wrote in a report today. -- Bloomberg

Petronas Q3 profit up on unit IPOs

2011-03-03T16:45:00.001+08:00

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) posted a RM10.1bil jump in net profit for its third quarter to RM23.7bil owing largely to proceeds from the listing of two subsidiaries on Bursa Malaysia but indicated high annual dividends to the Government will need to be cut in the future.

Trimming the enormous dividends it pays to the Government needs to be done as Petronas intends to bump up capital expenditure substantially to replace aging plant and machinery and to search for new oil reserves.

“We can't afford to maintain a high payout ratio,” said Petronas president and CEO Datuk Shamsul Azhar Abbas at a media briefing of the oil company's third quarter results. “We are not in the mood to borrow money to pay dividends to the Government.”

Petronas paid dividends of RM34.3bil for the period ended Dec 31, 2010, of which the Government received RM30bil. The RM30bil dividend payment to the Government has been a legacy amount by Petronas in recent years.

Shamsul said Petronas must invest around RM55bil annually or RM275bil over the next five years to maintain the integrity of its oil producing assets to at least maintain, if not grow, the current oil production rate in the country which year-to-date was 1.6 million barrels of oil equivalent. Petronas is expected to spend RM40bil on capex this fiscal year.

Indicating the seriousness of the situation, Petronas said production of oil and its equivalent for the third quarter was slightly lower than the same quarter last year and discovery of oil year-to-date was 46% lower than 2009 and the lowest levels since 2000.

The size of recent oil reserves was also 53% smaller than the 10-year average size.

“Despite exploration and production costs quadrupling, returns have halved over the last decade,” said Shamsul.

“Replenishing reserves has been challenging since the maturation of existing fields.”

He said if large investments were not spent on maintaining existing production assets, oil production would decline by 1% to 2% a year for the rest of the decade. Some older oil fields are depleting by 10% per annum.

Petronas said funding the increase in capex would largely come from operations and sustaining margins, which recently was at 40%, was important in funding a good portion of its future investments.

“Our gearing levels are good but that's not a ticket to go and borrow,” said executive vice-president for finance Datuk George Ratilal.

For the third quarter ended Dec 31, 2010, revenue rose to RM60bil from RM53.4bil in the same quarter in 2009 and Petronas booked RM9.3bil from the listing of Petronas Chemicals Group Bhd and Malaysia Marine and Heavy Engineering Holdings Bhd.

Stripping out proceeds from the sale of those shares, profit would have increased by RM849mil as the stronger ringgit against the dollar had negated the much higher selling price of crude oil and petroleum products for the quarter compared from a year ago.

For the nine months to Dec 31, Petronas recorded a 15.8% growth in revenue at RM175.6bil compared to RM151.6bil the previous corresponding period. Net profit rose 39.8% to RM50.2bil from RM35.9bil, but stripping out the gains from the two IPOs, net profit would have grown by RM5bil.

Petronas said higher costs such as steel and drilling rigs had also eaten into profits but Petronas, minus proceeds from the two IPOs, was expected to hit an earlier set pre-tax profit target of RM80bil for its current financial year.

While the high price of crude oil which is well above US$100 a barrel would boost profit, Petronas is worried about the destruction in demand and the slowdown in the global economy should such high prices persist.

Shamsul felt the price of crude oil should fundamentally hover between US$75 and US$78 a barrel.

With the era of easy oil over, Petronas will now look for new reserves at unconventional sources such as oil shales but will not overpay for such assets.

Shamsul said Petronas was looking at unconventional oil assets in China, Myanmar, Indonesia and Australia. It plans to sell unprofitable international assets.

Petronas also announced it will change its financial year to end-December after its current year ends on March 31. Its 2011 financial year would be nine months until Dec 31, 2011. The change of its fiscal year to a calendar year would improve efficiencies and align Petronas with global practices and statutory requirements in countries it operates in, said Shamsul.

Its listed subsidiaries on Bursa Malaysia also announced a similar change in their financial year-end.

By JAGDEV SINGH SIDHU
jagdev@thestar.com.my

Oil reserves found off Sarawak’s coast to boost Govt coffers

2011-02-15T11:09:00.000+08:00

By SHARIDAN M. ALI
sharidan@thestar.com.my

PETALING JAYA: Petroliam Nasional Bhd (Petronas)’s persistency in exploring for the precious commodity within Malaysia has struck gold with major oil and gas reserves discovered off the coast of Sarawak.
Some 100 million barrels of oil and 2.8 trillion standard cubic feet (tscf) of natural gas were discovered from two exploration blocks there.

Spurred by the success, Petronas plans to drill more than 50 exploration wells off Malaysia over the next three years.
“These activities, especially if they result in discoveries, are expected to boost business opportunities in the oil and gas industry and will promote upstream investment in the country,” it said in a press statement yesterday.

A research report said the new oil and gas finds represent 2% of oil reserves and 3% of natural gas reserves.
“These new discoveries underpin our optimism for the industry, as (they) prolong the lifespan of Malaysian reserves – 24 years for crude oil and 38 years for natural gas,” said the report by AmResearch yesterday.
Commenting on the latest find, Petronas said 2.6 tscf of natural gas was struck after drilling almost 4km below sea level at the NC3 well at the SK316 block.
Over at another block called SK306, some 100 million barrels of oil reserves and 0.2 tscf of gas were found after drilling extended beyond 3km.
The well at SK306 block, called Spaoh-1, is currently being prepared for production testing.
Production test results had shown that the deposits were technically recoverable, added the statement.
The decision to concentrate on exploration activities in Malaysia rather than overseas was made recently, with Petronas deciding to engage Malaysian companies to help drill for oil at marginal oilfields offshore.
Petronas had found 106 marginal fields containing 580 million barrels of oil, and believed the high price of crude today makes such drilling activity viable.

Petronas Chemicals raises 4.1 billion dollars in IPO

2010-11-26T16:49:00.000+08:00

Petronas Chemicals raises 4.1 billion dollars in IPO

Petronas to list Petronas Chemicals Group, total assets RM26.89b

2010-10-10T14:48:00.000+08:00

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has released the draft prospectus for Petronas Chemicals Group Bhd, formerly Kuantan Terminal Sdn Bhd, which has total assets of RM26.98 billion as at March 31, 2010.

The draft showed Petronas Chemicals posted net profit of RM2.59 billion on the back of RM12.20 billion in revenue for the financial year ended March 21, 2010.

Petronas Chemicals Group, the leading integrated petrochemicals producer in Malaysia and one of the largest in Southeast Asia, said it intends to strategically increase its production capacity through enhancements to our existing facilities and potentially through investments in new facilities.

CIMB Investment Bank Berhad is the principal adviser, managing underwriter and retail underwriter. The joint global coordinators and joint bookrunners are CIMB Investment Bank, Deutsche Bank AG, Hong Kong Branch and Morgan Stanley & Co. International plc.

'We are considering making operational improvements to our two ethylene crackers at the Kertih IPC to enable us to extract even greater value from our ethane feedstock. In addition, we are also reviewing debottlenecking projects for certain upstream product processes to maximise our ability to produce higher value added products further downstream,' it said.

It said to capitalise further on Malaysia's advantages as a petrochemicals production hub, it intends to examine adding new plants and facilities in Malaysia.

'We may also review opportunities to expand our production capacity outside Malaysia. In particular, we are studying the possibility of developing a greenfield ammonia and urea production facility that would be supplied with natural gas feedstock available off the coast of East Malaysia,' it said.

Petronas Chemicals also said Petronas was studying a greenfield project to develop an integrated refinery and petrochemicals complex in Peninsular Malaysia that would produce, among other things, naphtha for use as feedstock for petrochemical products.

'With Petronas currently taking the lead in evaluating the project, we expect to become more closely involved in examining the project at a suitable juncture,' it said.

Tengku Razaleigh Hamzah - Petronas Chairman - Part 1

2010-10-10T14:01:00.000+08:00

Summary
- The Interview was conducted in Bahasa Malaysia
- Tengku Razaleigh explained the difficulties and obstacles in the early stages of Petronas and the needs to amend Akta Kemajuan Petroleum 1974.
- Tengku Razaleigh stressed on why the country's wealth and resources belongs to the rakyat.

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Tengku Razaleigh Hamzah - Petronas Chairman - Part 2

2010-10-10T14:00:00.000+08:00

Summary
- The Interview was conducted in Bahasa Malaysia
- He explained the structure of oil royalty between federal and states government.
- He gave example on how and what past tin companies had been doing to the country's reserves.
- He again stressed, for the benefit of the country and rakyat, that Petronas must control and manage oil and gas resources properly.
- He had hoped that, with proper training, our own citizen should be given a role to take part and perform in the oil & gas and other related industry as well, not just a spectator.

[ Download ]

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Petronas move to list 2 big units welcomed

2010-03-31T12:38:00.002+08:00

Analysts say this is good good news for investors, considering that big new listings have been slow in coming to Bursa Malaysia
National oil firm Petroliam Nasional Bhd (Petronas) will list two "sizeable" subsidiaries with good track records on the local stock exchange this year, Prime Minister Datuk Seri Najib Razak said.

Analysts said this was good news for investors, considering that big new listings had been slow in coming to Bursa Malaysia, with sizeable companies like Astro All Asia Networks plc aiming to go private.

Last year, there were just 12 new listings on Bursa Malaysia.

"These initiatives have the goal to reduce the government's presence, directly or indirectly, in business activities that are best carried out by the private sector," Najib said at the Invest Malaysia 2010 conference in Kuala Lumpur yesterday.
He said Petronas had identified the companies to be listed, but did not name them.

"We have heard for some time that the Petronas group was looking at listing some of its subsidiaries. So we look forward to hearing the details of that. We're very much looking foward to the (listings) happening," Bursa Malaysia chief executive officer Datuk Yusli Mohamed Yusoff told reporters on the sidelines of the conference.

Fund managers voiced hope that the two companies would have a decent-sized free float, or amount of shares available for public trading. This has been a key complaint among investors in Malaysia - that there are not enough shares available for trading among the listed companies.

"Petronas already has some companies listed in the market, but they're not so liquid," a fund manager noted.

"When you talk about liquidity in the market today, Bursa allows companies to come to market at 25 per cent free float. But I think we should change some of these rules. Make it at least 40 per cent so that will increase liquidity, which will then allow for higher weightage and this will help the market as a whole," said Pankaj Kumar, chief investment officer at Kurnia Insurans (Malaysia) Bhd.

Yusli said the current requirement was adequate when benchmarked against other markets and the exchange had no plans to change that for now.

"Although 25 per cent is the minimum, we would like to see a much higher level. We would love to see overall free float go beyond 50 per cent," he remarked. - By Adeline Paul Raj

Petronas Staff Bid Hassan Farewell With Fond Memories

2010-02-14T23:31:00.001+08:00

By Siti Hawa Othman

KUALA LUMPUR, Feb 9 (Bernama) -- Petronas is one brand that makes Malaysians proud. And for over a decade, one man has been the face of Petronas, the man we bid farewell on Tuesday.

The mood was mixed with a tinge of sadness as he walked to the foyer of the Petronas Twin Towers, shaking hands with the staff and well-wishers.

For Tan Sri Mohd Hassan Marican, who has helmed the corporation since 1995, his term as president and chief executive officer (CEO) ends Tuesday.

It was obvious that he was fighting back the tears as he smiled at the staff.

"I am okay," he said, when asked by Bernama how he was doing.

The staff in their thousands had been waiting at four separate spots on their own free will from 4.30pm to wish Hassan, who was accompanied by his wife, Puan Sri Noraini Mohd Yusoff from his office in the 81st floor, farewell.

Hassan was proud of his staff and always reminded them they were doing a national service.

He would always relate to the press how his men had struggled under the hot sun in the desert and drilled the deepest ocean. He wanted them to know that they were special and that Petronas had contributed to nation-building.

And today, they gathered to bid goodbye to a very special man with fond memories.

Some, unbashedly, cried. Others sang the Petronas anthem and applauded him as he walked by amid shouts "We love you Tan Sri".

The staff held up notes and placards saying "U're simply the best", "You rock," "TQ for the legacy" and "We are sad you are leaving".

Shuzairin Shuib and Salwa Mohd Salleh, from the International Business Unit, said they were sad and touched as Hassan had given so much to the organisation.

"He is a good leader, bringing Petronas to greater heights," they said.

Yugentharan, from Research & Technology Unit, said he was sad because Hassan was a good leader.

"He has done a lot of good things, looking into the sector of education, scholarships" he said.

Many were disappointed at him leaving Petronas and had wanted him to have a proper farewell. It was understood that many cried over a two-page farewell note that he posted Monday.

Never to take credit for himself, Hassan had always attributed the national oil company's success to the wisdom and foresights of its founders.

He had said that Petronas had instilled in its people the resolve to deliver superior performance to leave a legacy for future generation.

Trained as accountant, Hassan, 57, had joined Petronas in February 1989 as senior vice president of finance. He was under the tutelage of yet another great man Tan Sri Azizan Zainul Abidin.

Azizan and Hassan had led a strong and committed management team which was responsible for the many successes of Petronas today.

Petronas, set up in 1974 to look after the country's petroleum resources, made its first international venture at the turn of the 1990s, in line with its business integration, value-adding and globalisation strategy, and has never looked back.

Hassan was appointed president and CEO in 1995 and had assumed the post of acting chairman with the passing of Azizan in 2004 at age 69. Hassan was said to be visibly upset with by the latter's demise.

Petronas then was already a strong company and ranked among Fortune Global 500's largest corporations in the world, with a presence in more than 30 countries.

From its humble beginnings in 1974 with a paid-up capital of RM10 million, its shareholders' capital had grown to RM232.1 billion as of March 2009 while total assets were valued at RM388.1 billion.

Petronas contributed more than 40 per cent to the federal government's coffers and has since its inception, paid the government a total of RM471.3 billion.

It announced a pre-tax profit of RM89.1 billion for the year ended March 31, 2009 on a revenue of RM264.2 billion.

Petronas usually sets aside up to 35 per cent of its profits every year for investment.

For the year, it has made RM74.0 billion in payments to the federal government which accounted for 45 per cent of the government's revenue and 71.4 per cent of its pre-tax profit.

Its international operations were now the biggest contributor to the group's revenue.

Hassan has proven his mettle and the baton is now passed to yet another able man, Datuk Shamsul Azhar Abbas, who will assume the president and CEO posts tomorrow.

Shamsul, who was MISC Bhd's managing director prior to his retirement last year, has been with the company since 1974.

He has vast experience in the petroleum industry, having served in several senior positions including vice president of oil business, vice president petrochemicals, vice president exploration (upstream) and vice-president of maritime and logistics.

Some of the staff met by Bernama said they welcomed the new boss who was said to be another charismatic leader.

-- BERNAMA

Petronas profit falls on lower sales, oil price

2009-12-09T12:32:00.002+08:00

PETROLIAM Nasional Bhd, Malaysia’s state oil company, said first-half profit dropped 48 per cent because the global economic slowdown sapped energy demand and reduced fuel prices.

Net income fell to RM20.29 billion (US$6 billion) in the six months ended Sept 30 from RM38.65 billion a year earlier, Petronas, as the company is known, said in a statement on its Web site. Sales declined 38 per cent to RM98.18 billion.

Oil producers are slashing costs, cutting jobs and holding back on some new investment to halt the slide in earnings amid slumping demand brought by the worst worldwide recession since at least the 1930s. Exxon Mobil Corp, the world’s largest oil company, cut this year’s capital-spending estimate by 10 percent after third-quarter profit dropped to the lowest in six years.

“The decrease in revenue was mainly due to the overall decrease in product prices and lower sales volume,” Petronas said in the statement. International operations remain the company’s biggest revenue generator, contributing 49 per cent to the company’s total sales, it said.
Tapis crude oil, Malaysia’s benchmark grade, averaged US$66.82 a barrel in the six months ended Sept 30, down from US$126.46 a year earlier, according to data compiled by Bloomberg.

Reduced Sales

Domestic sales dropped 33 per cent to RM21 billion. Exports fell 48 per cent to RM29.4 billion, according to the company.

Petronas’s total oil and gas production was equivalent to 1.73 million barrels of oil a day. The company didn’t provide comparative figures for a year earlier. Domestic output was at 1.08 million barrels of oil equivalent a day and international operations produced 642,800 barrels of oil equivalent a day.

Capital spending declined 17 per cent to RM19.2 billion in the six-month period from a year earlier.

Petronas said domestic output fell on the implementation of a reservoir management plan and an increase in maintenance activities, including pipeline replacement. Output at its international units fell mainly on a drop in demand for its gas in Africa. - Bloomberg

Petronas sells stakes in Irish gas fields to Providence

2009-12-04T19:34:00.001+08:00

PETALING JAYA: Providence Resources plc is exercising options to acquire 40% stakes in the Kinsale Head Area gas fields plus the adjoining Seven Heads field from Petronas International Corp Ltd, the overseas investment arm of Petroliam Nasional Bhd (Petronas).

Kinsale Head comprises the Kinsale Head, South West Kinsale and Ballycotton gas fields and also gas storage facility in the Celtic Sea.

Providence said in a statement that an initial payment of US$3.8mil had been made to Petronas for the stakes with the balance due when the deal closed no later than the end of the first quarter of 2010.

The company said under the terms of the option agreement, the stakes in the Kinsale Head area assets would be purchased on the same pro rata basis by which Petronas acquired the stake from Marathon Oil Corp in April at a total value of US$180mil.

According to the company, the gas fields had an average net production of 30 million cu ft of gas per day in the first quarter of this year.

Providence chief executive Tony O’Reilly said in the statement that the transaction allowed the company to capitalise on its extensive operational experience offshore Ireland in combination with Petronas’ proven track record in gas production, storage and trading.

“Upon completion, not only will Providence’s attributable daily production double to over 4,000 barrels of oil equivalent per day, but we’ll also gain exposure to existing and new gas storage and trading opportunities, which we see as a huge potential future growth area for the company,” he added.
source:the star online

Petronas gas records pre-tax profit of RM268.716 mln in Q2

2009-12-01T13:27:00.001+08:00

KUALA LUMPUR, Nov 20 (Bernama) -- Petronas Gas Bhd recorded a lower pre-tax profit of RM268.716 million in the second quarter ended Sept 30, 2009, compared to a pre-tax profit of RM273.595 million in the corresponding quarter in 2008.

Revenue declined to RM823.188 million from RM849.700 million previously, the company said in an announcement last Friday.

Bernama on Friday erroneously named the company as Petronas Dagangan Bhd. The error is regretted.

For the nine months ended Sept 30, Petronas Gas posted a pre-tax profit of RM623.014 million on the back of a revenue of RM1.609 billion.

The company said the decreased revenue, for the quarter under review, was due to lower throughput revenue.

It said while revenue prospects for gas processing and transmission business would be dependent on demand for gas as well as upstream gas production levels, the margin for the gas processing and transmission business would not be impacted.

The company added prospects for the utilities business would depend on the pace of economic recovery and any variation in gas price would be reflected in the pricing to customers.

Petronas Dagangan Records Pre-tax Profit Of RM275.914 Million In Quarter 2

2009-12-01T13:25:00.002+08:00

KUALA LUMPUR, Nov 23 (Bernama) -- Petronas Dagangan Bhd recorded a higher pre-tax profit of RM275.914 million in the second quarter ended Sept 30, 2009 compared to the pre-tax profit of RM182.933 million posted in the same quarter of 2008.

However, revenue dropped to RM5.152 billion from RM7.69 billion, the company said in a statement to Bursa Malaysia here Monday.

For the six months ended Sept 30, the company posted a pre-tax profit of RM557.98 million on the back of revenue of RM9.932 billion.

The company said the decrease in revenue for the quarter was the result of lower average product selling prices.

On the current financial year, the company anticipated that demand conditions would be challenging but market leadership is projected to be maintained with continuous strategic marketing efforts and initiatives.

However, profits for the current financial year would be impacted by fluctuations in petroleum product costs, given the uncertainties in international oil prices and the global economy.

-- BERNAMA

Gold $5000+

2009-11-20T10:58:00.001+08:00

Wang ehsan for Kelantan from next year

2009-11-05T09:50:00.001+08:00

KUALA LUMPUR: Kelantan will receive compassionate payment from the federal government from the state's offshore oil production revenue starting next year, Datuk Seri Najib Tun Razak announced today.

The prime minister said that just like for Terengganu, the compassionate payment was being given after taking into account the need to continue developing Kelantan and to enhance the wellbeing of the people in line with national development trend.

"To ensure that the money is enjoyed directly by the people of Kelantan, the allocation will be in the form of development projects and poverty eradication programmes and will be channelled directly by the federal government after discussion with the state government," he said in the Dewan Rakyat today.
Najib was replying to questions previously raised by several MPs from Kelantan regarding oil royalties for the state.
He said the federal government had thoroughly studied the petroleum royalty issue mooted by the Kelantan government, including the legal aspects related to the powers of the government and the management of the country's petroleum revenue.

http://www.nst.com.my/Current_News/NST/articles/20091104114207/Article/index_html

Research and Markets: Malaysia Oil and Gas Report Q4 2009 Reveals That Malaysia Will Account for 1.95% of the Asia Pacific Regional Oil Demand by 2013

2009-11-04T13:13:00.002+08:00

DUBLIN--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/fcc350/malaysia_oil_and_g) has
announced the addition of the "Malaysia Oil and Gas Report Q4 2009" report to
their offering.

This Malaysia Oil and Gas Report provides industry professionals and
strategists, corporate analysts, oil and gas associations, government
departments and regulatory bodies with independent forecasts and competitive
intelligence on Malaysia oil and gas indust

Publish Post

ry

The latest Malaysia Oil & Gas Report from BMI forecasts that the country will
account for 1.95% of Asia Pacific regional oil demand by 2013, while providing
8.52% of supply. Asia Pacific regional oil use of 21.40mn barrels per day (b/d)
in 2001 reached 25.67mn b/d in 2008. It should average 24.83mn b/d in 2009, then
rise to around 28.51mn b/d by 2013. Regional oil production was just under
8.41mn b/d in 2001, and averaged 8.45mn b/d in 2008. It is set to increase to
8.75mn b/d by 2013. In 2001 the region was importing an average 12.99mn b/d.
This total had risen to an estimated 17.22mn b/d in 2008, and is forecast to
reach 19.76mn b/d by 2013.

In terms of natural gas, in 2008 the region consumed 459bn cubic metres (bcm)
and demand of 562bcm is targeted for 2013. Production of 356bcm in 2008 should
reach 488bcm in 2013, but implies net imports easing from an estimated 102bcm
per annum in 2008 to 74bcm in 2013. This is in spite of many Asian gas producers
being major exporters. Malaysia's share of gas consumption in 2008 was 6.69%,
while its share of production was 17.54%. By 2013 its share of gas consumption
is forecast to be 6.02%, with the country accounting for 17.41% of supply.

For 2009 as a whole, the publisher is now assuming an average OPEC basket price
of US$55.00 per barrel (bbl), a 41.5% decline year-on-year (y-o-y). This
represents an upgrade from the US$52 forecast they have stuck with during the
past three quarters. Their OPEC basket assumption delivers likely Brent, WTI,
Urals and Dubai prices of US$56.30, US$57.50, US$55.60 and US$55.60/bbl
respectively. For 2010,the publisher expects to see a recovery to US$60.00/bbl
for the OPEC price (up from their previous forecast of US$58), gaining further
ground to US$65.00 in 2011 and to US$70.00/bbl in 2012. Their post-2010
forecasts are unchanged and the publisher is continuing to use a long-term price
assumption of US$70.00 for 2013-2018.

In 2009, BMI is now assuming a global average gasoline price of US$62.12/bbl,
with the fuel having peaked in June. The overall y-o-y fall in 2009 gasoline
prices is put at 40.0%. The BMI gasoil forecast is for an average price of
US$68.62/bbl, assuming a monthly high of US$92.49/bbl in December. The full year
outturn represents a 43.4% fall from the 2008 level. The annual jet price level
for 2009 is forecast to be US$65.17/bbl. This compares with US$124.95/bbl in
2008. The 2009 average naphtha price is put by BMI at US$49.06/bbl, down 43.9%
from the previous year's level.

Malaysian real GDP is now forecast by BMI to fall by 3.4% in 2009, compared with
the 2008 growth rate of 4.6%. The publisher is assuming 2.6% growth in 2010,
4.5% in 2011, 4.7% in 2012, followed by 4.5% in 2013. State-owned Petronas
operates in partnership with various international oil companies (IOCs) under a
production sharing system that the publisher believes will result in oil
production of 745,000b/d by 2013. Consumption is forecast to rise by up to 2%
per annum to 2013, implying demand of 557,000b/d. Malaysia's gas exports are set
to rise from 31.8bcm in 2008 to 51.2bcm in 2013, with production climbing from
62.5bcm to 85.0bcm over the period.

Key Topics Covered:

* Executive Summary
* SWOT Analysis
* Malaysia Energy Market Overview
* Business Environment Ranking
* Business Environment
* Industry Forecast Scenario
* Long-Term Energy Outlook
* Company Monitor
* Glossary of Terms
* Methodology & Risks To Forecasts

Companies Mentioned:

* Petroliam Nasional-Bhd (Petronas)
* ExxonMobil Sdn Bhd
* Shell Malaysia Ltd
* ConocoPhillips
* BP
* LTAT
* Chevron
* Murphy Oil
* Hess
* Talisman
* Gulf Petroleum
* Total
* Newfield Exploration

For more information visit
http://www.researchandmarkets.com/research/fcc350/malaysia_oil_and_g

Research and Markets
Laura Wood, Senior Manager,
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

Copyright Business Wire 2009

Petronas Plans To Maintain Capex At US$12 Billion

2009-06-26T17:23:00.001+08:00

KUALA LUMPUR, June 25 (Bernama) -- National oil company Petroliam Nasional Bhd (Petronas) plans to maintain capital expenditure (capex) for its current financial year ending March 31, 2010, at US$12 billion, president and chief executive officer Tan Sri Hassan Marican said today.

Speaking to reporters after announcing the group's results for the financial year ended March 31, 2009, he said that 60 percent of the amount will be utilised for domestic operations and the remaining 40 percent for international operations.

For the financial year just ended, the group increased its capex to RM44.0 billion from RM37.6 billion.

During the year, the group reinvested 21.1 percent or RM21.9 billion of its profit before taxation, royalty and export duties.

The reinvestment was significantly lower compared to other major oil and gas companies.

However, Hassan said that Petronas sees 35 to 40 percent of its profit as a comfortable level for the reinvestment.

The reinvestment is necessary to ensure the group's sustainable operations and to generate future revenue and profit, he said.

On overseas expansion, Hassan said the group was looking to strengthen its presence in the countries that it was already operating.

As at March 31, 2009, Petronas is involved in various activities along the oil and gas value chain in more than 30 countries worldwide.

Asked about the speculation concerning his successor, Hassan said: "There are always speculations on my successor. I think that question needs to be addressed to the government."

He said that under his employment contract, his term will end in February next year.

-- BERNAMA

Malaysia Petronas says oil industry to stay volatile

2009-06-14T14:40:00.000+08:00

KUALA LUMPUR, June 8 (Reuters) - The oil industry will stay volatile even after a price rally towards $70 a barrel, as it is still unclear if the rise is due to the broader economy or a new speculative play, the chief of Malaysia's state oil and gas company said on Monday.

Mohd Hassan Marican said the industry is undergoing a further wave of consolidation, as cash-strapped small- to medium-sized firms sell off assets due to lower margins, and that selected international and state-run oil companies will gain from this.

"It is still uncertain whether the increase is due to the 'green shoots' of economic recovery or due to a new speculative play in the commodities and the weakening of the U.S. dollar," Petronas President and Chief Executive Officer Hassan told the annual Asia Oil and Gas Conference.

"Despite the fragile sense of stability emerging in the market, I believe that we can expect continued volatility in the industry for some time to come, reflecting the ongoing developments in the broader economy."

U.S. oil prices jumped to a seven-month of $70.32 on Friday, before easing below $68 on Monday as the U.S. dollar continued to strengthen from its recent weakness. [O/R]

Oil prices have doubled from the low $30s hit last winter, although many in the industry fret that the rise is not fed by fundamentals but by optimism only.

Hassan said that after nearly a decade of limited spare capacity averaging 2.7 million barrels per day (bpd), spare crude capacity this year is expected to rise to 6.4 million bpd, or about 8 percent of world oil demand.

He urged the industry to continue to develop oil and gas fields without excessive disruption due to adverse market conditions in order to moderate the volatility inherent in the industry cycle. (Reporting by David Chance and Chua Baizhen; Writing by Ramthan Hussain, Editing by Michael Urquhart)

Petronas forms JV with MISC and Mustang Engineering

2009-05-17T22:31:00.001+08:00

KUALA LUMPUR, May 15 — Petronas International Corporation Ltd (PICL), a wholly-owned subsidiary of Petronas, has signed an agreement to form a joint-venture company with MISC Bhd and Mustang Engineering Ltd of the United Kingdom.

The company will provide floating liquefied natural gas (LNG) engineering solutions and services worldwide, said Petronas in a statement today.

According to Petronas, the company will also aspire to be a one-stop centre in delivering cost-effective engineering solutions to develop and monetise remote offshore gas reserves, create high-value intellectual properties and offer best practices in floating LNG production storage and offloading project management and operations.

Petronas said the shareholding structure of the company would consist of PICL with 60 per cent of overall shares, follow by MISC 30 per cent and Mustang engineering, ten per cent.

Petronas stated that the partnership with MISC and Mustang Engineering is in line with its aspiration to grow further its leadership position in the global LNG business.

MSC is a marine transportation and logistics service company. Mustang engineering deals with among others, engineering, design, project management, and construction management services to the oil and gas industry. — Bernama

Malaysia Stocks to Fall on Earnings, Dilution, AmResearch Says

2009-03-04T14:08:00.001+08:00

By Tien Hin Chan

March 4 (Bloomberg) -- Malaysia’s benchmark stock index may drop another 7.5 percent by year-end to a five-year low as the global recession batters earnings and more companies seek funds from shareholders to boost capital, AmResearch Sdn. said.

The research unit of AMMB Holdings Bhd. cut its year-end target for the Kuala Lumpur Stock Exchange Composite Index to 800 from 850. The gauge is headed for its lowest level since May 26, 2004, as corporate earnings will shrink 7 percent this year, AmResearch strategist Benny Chew wrote in a report today. The index was at 864.44 at 11:59 a.m. local time.

Malayan Banking Bhd. and TM International Bhd. last week sought a combined 11.3 billion ringgit ($3.1 billion) from shareholders to boost capital. The race to “de-leverage” balance sheets by selling additional stock will be led by banks, carmakers, airlines and producers of oil, gas and building material, risking a dilution of equity, AmResearch said.

“The global trend of companies resorting to rights issue has only recently caught on with Malaysian companies,” Chew wrote. This is “due to the belated acceptance of a more prolonged economic downturn and a tougher funding environment, where capital is scarce or competed away.”

Malayan Banking, known as Maybank, has slumped 5.1 percent since it announced the sale of new shares to existing shareholders on Feb. 27. TM International has lost 11 percent since Feb. 26, after its 5.25 billion ringgit rights offer.

“Current valuations would still need to be significantly diluted to reflect growing risk of rights issues,” AmResearch said. “Valuations are already depressed.”

“Risk aversion” also means the price of the stock sale needs to be attractive to entice demand, signaling that the share price discount “would likely be steep,” Chew said.

To contact the reporters on this story: Chan Tien Hin in Kuala Lumpur at thchan@bloomberg.net

Oil prices recover slightly after steep drop

2008-10-08T13:48:00.000+08:00

By STEVENSON JACOBS

NEW YORK (AP) — Oil prices swung higher Tuesday, snapping a four-day plunge as investors temporarily halted their frantic selling to see whether the government's sweeping economic bailout can stem a widening global downturn.

Light, sweet crude for November delivery rose $2.25 to settle at $90.06 a barrel on the New York Mercantile Exchange, after earlier trading as high as $93.02.

Prices had lost nearly $13 in the past four trading sessions as a widening economic crisis spreads overseas and undercuts energy demand forecasts.

Despite Tuesday's modest advance, analysts said crude's fundamentals suggest prices are headed lower.

"We've just seen a huge shift in sentiment where the focus isn't on supply anymore. It's on demand, and that demand continues to weaken," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill.

At the pump, crude's general downward trend continued to weigh on retail gas prices. A gallon of regular fell 2.4 cents overnight to a new national average of $3.48, according to auto club AAA, the Oil Price Information Service and Wright Express. Prices peaked at $4.114 a gallon on July 17.

Crude's modest gains came as investors trickled back into the oil market a day after growing financial worries weighed down markets across the globe. Tensions eased some after the Federal Reserve announced an emergency plan to buy up massive amounts of companies' short-term debt in its latest effort to unclog jammed credit markets.

Still, the initiative, along with the government's $700 billion financial bailout plan approved last Friday, failed to soothe investors worried about a deepening economic malaise. The Dow Jones industrial average fell more than 500 points after advancing slightly earlier in the day. On Monday, the blue chip index fell below 10,000 for the first time in four years.

Meanwhile, oil market investors are looking for signs that the Organization of the Petroleum Exporting Countries may cut production if prices fall further. Iranian Oil Minister Gholam Hossien Nozari on Saturday called on fellow OPEC members not to pump too much oil in a bid to keep prices above $100.

However, OPEC may be reluctant to slash output since higher gasoline and heating costs would be a further drag on economic growth.

"I think it's very difficult for OPEC," said David Moore, commodity strategist at Commonwealth Bank of Australia in Sydney. "With the international economy looking weak, decisions to support oil prices have to be balanced against not making the situation worse."

A stronger dollar has also been pressuring oil prices lately. The greenback weakened slightly Tuesday, helping send prices higher. Investors tend to buy commodities like oil to defend against dollar weakness and a hedge against inflation, but sell crude as the U.S. currency strengthens.

The 15-nation euro bought $1.3595 in trading Tuesday, up from the $1.3457 late Monday in New York but still at lows not seen this year.

In other Nymex trading, heating oil rose 3.17 cents to settle at $2.5057 a gallon, while gasoline futures rose less than half a penny to settle at $2.0628. Natural gas for November delivery fell 6.7 cents to settle at $6.768 per 1,000 cubic feet.

In London, November Brent crude rose 98 cents to settle at $84.66 per barrel on the ICE Futures exchange.

Associated Press Writers George Jahn in Vienna, Austria and Alex Kennedy contributed to this report from Singapore.

Petronas posts record profit of $18.1 bil., interested in Iran gas+

2008-07-16T22:15:00.001+08:00

Posted: 2008-07-15 05:26:26

KUALA LUMPUR, July 15 (Kyodo) - Malaysia's state-owned oil company Petroliam Nasional Bhd. announced Tuesday a 40.3 percent increase in net profit to a record $18.1 billion for the financial year ended March 31, on the back of higher sales and higher oil prices.

Petronas, Malaysia's biggest and most globalized company, also said it is still interested in Iran's Pars liquefied natural gas project although its partner, Total SA of France, has canceled its investment over increasing political tension.

"We continue to be interested in operating in Iran. Yes, we know the situation there. I have read the announcement by Total, but as Petronas, we continue to be interested in Iran, " Petronas CEO Hassan Marican told a press conference.

Total, which has a 40 percent stake in the Iran's South Pars project, announced last week it would not spend any more money in the project due to political risk as Iran comes under increasing pressure from the United States to halt its nuclear energy program.

Petronas, which holds a 10 percent share, said it would reassess the project's cost structure.

The remainder of the consortium is held by National Iranian Gas Export Co.

"But on the LNG project specifically, where we are in a consortium with Total, I have said previously that we cannot come to a final decision on that particular project because of the increase in cost and because we have not completed our discussion with the Iranians," Hassan said.

Whether Petronas will go it alone on the project, he said: "We are capable and able to undertake the LNG projects but there are other factors. So we have to make an assessment."

The South Pars field holds around 14 trillion cubic meters of gas, about 8 percent of world reserves.

Petronas's aggressive expansion overseas has paid off handsomely for the company.

The group, which also controls several listed units such as shipping firm Malaysia International Shipping Corp. Bhd., retail gasoline station operator Petronas Dagangan Bhd. and gas distributor Petronas Gas Bhd., saw revenue rose 29.8 percent from the previous year to $66.2 billion.

But for the first time, the biggest contributor to revenue came from the group's international operations, which generated 40.3 percent of total revenue.

The high oil prices brought windfalls to Petronas and also to the Malaysian government, with Petronas now the single largest contributor to government revenues.

For the 2007 financial year it paid a total of 67.6 billion ringgit ($21 billion) in taxes, dividends, royalties and export duties, up from 52.3 billion ringgit the previous year.

Out of the 67.6 billion ringgit, 62.8 billion ringgit went to the federal government and made up 44 percent of government's total revenue.

The rest went to the state governments.

But despite the company's payments to the government, its huge profits became a political issue after the government decided to raise retail gasoline prices by nearly 41 percent and diesel prices by 63 percent.

Led by the opposition, there have been calls for the government to use Petronas's profits to subsidize fuel prices but Hassan said it would be dangerous for the government to do so.

"Given the volatile nature of the industry, given the fact that we are investing into new development of reserves at high cost, should there be a major downturn in the oil price, then the ability to maintain the high results would be a real challenge and would then have a major impact on government revenue," he warned.

He added that the 67.6 billion ringgit total payment to governments for the year represented 63.1 percent of the group's total profits even as operating costs are rising.

For example, he said, daily charter rates for drilling rigs have recently gone up almost 300 percent and the average price of steel has risen 225 percent.