Petronas barrels in record RM96b profit as oil prices soar

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Petronas has posted a record profit before tax of RM96 billion, a 25 per cent increase from the previous year.

Its turnover rose 21 per cent to RM223 billion ringgit for the financial year ended 31 March 2008. Revenue from international operations made up 40 per cent of the total figure.

The results were released about 15 days later than in the past five years, when they were out by 30 June. The record profit for Petronas comes at a time when many Malaysians are struggling to cope with a 41 per cent hike in the retail petrol price and its inflationary impact.

While government subsidies for retail oil sales have been slashed, Petronas has increased its gas subsidies to the power sector by 18 per cent to RM14 billion. This includes RM8 billion to the independent power producers. It has also increased its subsidies to the non-power sector by 51 per cent to RM6 billion.

Petronas’ latest profit after tax and minority interests of US$18.1 billion puts it right up there with the big boys Chevron ($18.7 billion) and BP ($20.8 billion) and not far behind giants Exxon $40.6 billion and Shell ($31.3 billion).

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Mr. Mugam

Hello anil,

Wow, that’s a lot amount of money generate by the petronas. No wonder the money of the company is used by Tun M. to improve the crisis economy in 1998.

But the excess money given to the federal government did not channel in a proper way. People are curiously to know where is the money spent on. Based on the expenditure estimates in 2008, the total is about 48.12 billion ringgit malaysia used. the grand total petronas payment to the federal and the state government is about 67.6 billion. Now, where is the 19.5 billion channel to??

AHoo

We are proud that Petronas shines like in comparison to many other GLCs ! Well, that is what they are suppose to do as the best brains are there to ensure profitability. If they can’t please move aside for others with the right talent to take care of it. It is where the money goes that we have to be concerned. Making money is just one aspect of it and where the money is transfer to is the most critical part as this is where it will breeds corruption as the power that be thinks that this is their cashflow… Read more »

Enforcer

Please be reminded that the report of GP Rm 96 bil. if for the year ended March,08 ie before the price increase. Imagine what the figure would be after the subsidy is reduced and again further reduced in a months time?
That is why they are further subsidising the IPPs which already are in excess of capacity as mention by DSAI in the debate by 40%! …
To reitaliate what DSAI said earlier, “we the RAKYAT are proud of Petronas and its achievement, we only doubt the ruling UMNO/BN”

din

YEAR AFTER YEAR, PROFIT MADE. THEN WHERE DID THE MONEY WENT?

Watched the debate on TV. Must say that the Info Minister talked rubbish praising umno for making petronas great. Great? Then can he tell us where did all the money went.

Ganesh

According to Maelstrom’s post, our International reserves are RM410.9 billion and, in addition to that, Petronas made RM96 billion. Income tax department alone collected some RM80 bil last year from income tax.

Surely our local consumption of a mere 400,000 barrels per day is nothing compared to what the government has in its coffers. I am sure the so called fuel “subsidy” won’t cost so much in comparison.

http://www.malaysiakini.com/letters/84904

geekko

PETRONAS = Goverment Piggy Bank

So, pls ask who run the Goverment, where is PETRONAS money given to them?

ahmad

How did BN goverment calculated the fuel price at pump be RM2.70(Petrol) and RM2.58 (diesel)????????????????

Where does the petronas money given to BN goverment being spent??????????

Maelstrom

The international reserves at Bank Negara also posted a very healthy RM410.9 billion (equivalent to USD125.8 billion) as at 30 June 2008. With record Petronas profits posted and strong international reserves, isn’t it time for the government to consider a retail oil policy where government subsidies increase or decrease in line with crude oil price. This strategy of fixing the price of fuel at the pump irrespective of price movement in the crude oil market will benefit the public at large and remove at a stroke, the argument that the Government is only looking after the interests of selected big… Read more »

Radhakrishnan

Let’s not direct our ire to Petronas. The organization has its weaknesses, but the fact is it is channelling billions to the government. What we must demand is to know whether this billions is being be used productively and efficiently for nation building activities, or is being frittered away by … unscrupulous (politicians).