Petronas (Petroliam Nasional Berhad), the Malaysian oil and gas giant will continue to expand its business in renewable energy mainly in solar and wind energy to intensify its flexibility against all challenges that are faced by the oil and gas (O&G) industry.
Datuk Seri Mustapa Mohamed, the Minister in the Prime Minister’s Department (Economic Affairs) said
“The group’s financial loss in its recent quarter was due to the low income and significant declining in asset value following the decline in oil prices,”
“It was due to the weak demand, the spread of Covid-19 and the excess supply present in the market.”
He also mentioned that the recent development has occurred due to the plunge in crude oil prices which has compelled the state-owned firm to look into new opportunities.
The company will try to pursue the three-pronged strategies in its long term plans, expanding core business and ensuring a long term sustainability of the company in new business opportunities also maximizing cash generation.
Mustapa Mohamed said any appointments for individuals within the company will not cleave investors and market’s confidence in the group.
After the loss of tax in its third quarter which ended in September 30, 2020, from RM21.04 billion which was posted a year ago was eased to RM3.37 billion, hence higher Ebitda and lower impairment on assets.
The Brent crude oil prices in the second quarter this year, has continued to drop to an average of $29.20(RM118.96) per barrel compared to US$68.83 per barrel in the similar quarter in 2019
Tan Sri Muhyiddin Yassin, the prime minister had offered an advisor post to Tengku Razaleigh , which was rejected by him.
