KUALA LUMPUR: Malaysian state energy firm Petronas said Friday its third quarter net profit fell 12.3 percent due to slumping oil prices and loss on foreign exchange, warning of further difficulties ahead.
Petronas, the source of about half of Malaysia's budget revenue, said net profit for the three months ending September stood at 15.07 billion ringgit ($4.50 billion), down from 17.19 billion for the same quarter last year.
Revenue for the quarter was down 1.3 percent to 80.37 billion ringgit from 81.41 billion ringgit in the same period last year, the company said.
The dip came as oil prices took a dive coupled with an "unfavourable" US dollar exchange rate against the ringgit even though output increased, mainly from Iraq and Malaysian fields, Petronas said.
Malaysia's only Fortune 500 company said fourth quarter earnings were expected to be "considerably lower" amid a further decline in oil prices.
Chief Executive Shamsul Azhar Abbas was quoted by Dow Jones news wire as saying that Petronas is reviewing its spending plan and may cut up to 20 percent of its capital expenditure next year.
A global oil glut has sent prices slumping to four-year lows. The OPEC cartel has refused to cut production with analysts warning of further falls to come. (AFP)
