Petronas posts resilient 1H 2026 results, stays focused on safeguarding energy security
KUALA LUMPUR, Aug 28 — For the first half of the financial year ended June 30, 2026 (1H 2026), Petroliam Nasional Bhd (Petronas) recorded modest net profit and revenue that reflected disciplined execution, operational reliability and commercial excellence amid a challenging macro environment.
Petronas said its profit after tax (PAT) stood at RM27.2 billion, a modest increase of RM1 billion, or four per cent, in line with higher earnings before interest, tax, depreciation and amortisation (EBITDA) of RM56.8 billion.
Its revenue increased to RM152.4 billion, up RM19.8 billion, or 15 per cent, from RM132.6 billion in the same period last year. This was primarily supported by higher domestic production and higher sales volumes of liquefied natural gas (LNG) and processed gas, further reinforced by favourable average realised prices across major products, but partially offset by unfavourable foreign exchange impact.
“The improvement in PAT was partly offset by the recognition of accumulated share of losses from the Pengerang Refining Company Sdn Bhd and Pengerang Petrochemical Company Sdn Bhd (collectively known as PRefChem) joint venture upon additional capital injection, which is in accordance with applicable accounting standards,” it said in a statement here.
Petronas said previously, the losses were only recorded at the joint venture level. This injection formed part of the group’s transactions to attain full ownership of PRefChem in this financial year.
The national oil company said it would remain focused on safeguarding energy security, continuing its steadfast and timely efforts at the forefront of supporting the nation’s fuel supply continuity amid prolonged uncertainties arising from the West Asia conflict.
“The group will continue to advance sustainable value creation for future growth, including investments in exploration and development activities in Malaysia to strengthen long-term resource sustainability and future energy resilience, while strengthening its international presence to diversify supply pathways,” it added.
Cash flows from operating activities (CFFO) stood at RM47.5 billion in a marginal decrease of RM600 million from the same period last year, following working capital outflows, according to Petronas.
Capital investments (capex) amounted to RM41.4 billion, mainly driven by downstream’s additional capital injection in the PRefChem joint venture as stated above, as well as investments in upstream exploration and development activities.
“Total assets increased to RM794.3 billion, mainly due to higher investments in joint ventures, coupled with higher receivables and inventories. This was partially offset by lower cash and cash equivalents and a decrease in assets held for sale.
“Shareholders’ equity increased by RM800 million to RM449.1 billion, primarily attributable to the profit recorded during the period, partially offset by RM20 billion in dividends declared to shareholders,” it reported.
Petronas president and group chief executive officer Tan Sri Tengku Muhammad Taufik highlighted that Petronas’ priority in the first half of 2026 was to safeguard energy security “for those we serve.”
“To fulfil this duty, we undertook strategic investments to reinforce our portfolio for long-term resilience. In responding to the impact of the global energy crisis, Petronas leveraged the strength of its integrated portfolio and intensified efforts across the value chain to deliver uninterrupted energy for Malaysia as its national oil company,” he added.
Tengku Muhammad Taufik noted that despite prevailing challenges, the national oil company has continued to maintain financial and operational discipline, while strengthening its upstream position, expanding LNG supply nodes and enhancing new energy offerings. He said these efforts have contributed to a resilient financial performance in the period under review, which was delivered against a backdrop of prolonged uncertainty and volatility.
“The group’s commitment remains unwavering as we work to deliver reliable energy, pursue sustainable growth, even as it endeavours to strengthen its position and create long-term value for our stakeholders,” he continued.
On its outlook, Petronas said the global energy landscape remains fragile and uncertain amid elevated geopolitical headwinds and a prolonged West Asia conflict. “These conditions continue to influence prices, trade flows and cost structures, creating a challenging operating environment and cost pressures across the value chain.”
Despite the challenging environment, Petronas is demonstrating its resilience through prudent financial management and a steadfast commitment to advancing its transformation agenda.
It said it would ensure that the group remains well-positioned to navigate the market volatility and create long-term value. In strengthening regional and global energy security, Petronas has achieved significant milestones across its integrated portfolio.
“These include the establishment of the Searah joint venture with ENI, upstream discoveries in Malaysia, Suriname and Indonesia, and the expected completion of the acquisition of full ownership in PRefChem during the second half of the year.
“The group has further expanded its supply footprint through the diversification of long-term LNG supply arrangements via strategic partnerships, underpinning supply resilience and supporting sustainable growth,” said Petronas.
The national oil company further said it is resolute in capturing growth opportunities and delivering sustainable value by leveraging its integrated portfolio across businesses. The group continues to be guided by its energy transition agenda, reinforcing its commitment to meeting customers’ energy needs.
