LNG Uplifts Petronas H1 Profit

Malaysia's national oil and gas company has reported MYR 27.2 billion (around $6.73 billion) in profit after tax for the first six months of 2026, up four percent from the first half (H1) of 2025 thanks to higher liquefied natural gas (LNG) exports and higher products prices.

Petroliam Nasional Bhd (Petronas) logged gross LNG sales of 20.29 million metric tons for January-June 2026, up 17 percent from the same period last year. LNG cargoes delivered from Petronas' global portfolio totaled 282.

Last year Petronas delivered 563 LNG cargoes including 383 cargoes from the Petronas LNG complex in the state of Sarawak on Malaysia's side of Borneo and 41 cargoes from floating facilities PFLNG Satu and PFLNG Dua. LNG sales totaled 36.62 million metric tons, according to its annual report published February 27.

During H1 2026 Petronas announced contracts to supply 3.3 million metric tons per annum (MMtpa) of LNG mainly to Japanese companies including JERA Co Inc. Petronas also executed an offtake agreement for two MMtpa from QatarEnergy.

Also during the period Petronas approved the development of Regasification Terminal 3 in the state of Perak, its H1 2026 report said. The project will deploy a floating storage and regasification unit to supply Peninsular Malaysia.

On May 12 Petronas announced a 20-year time charter agreement for five LNG tankers. The vessels will be built in Shanghai, China. Their charter contracts will take effect between 2029 and 2030, Petronas said.

In the domestic market in H1 2026 Petronas sold 2.32 billion cubic feet per day of gas.

Petronas posted marketing sales of 9.04 billion liters for H1 2026.

Upstream production across its global oil and gas portfolio averaged 2.34 million barrels of oil equivalent a day (MMboed) during H1 2026, down from 2.4 MMboed during H1 2025. The decrease was "primarily due to planned portfolio optimization and asset transition activities, and the ongoing West Asia conflict, while partially offset by improved operations and higher gas availability to meet demand at the Petronas LNG Complex in Sarawak", it said in an online statement.

In the renewables sector Petronas had 9.1 gigawatts of generation and storage capacity installed or under construction as of June.

H1 2026 revenue rose 15 percent year-on-year to MYR152.4 billion. "The increase was primarily supported by higher domestic production and higher sales volumes of liquefied natural gas and processed gas, further reinforced by favorable average realized prices across major products, partially offset by unfavorable foreign exchange impact", Petronas said.

Cash flows from operating activities fell MYR 600 million year-over-year to MYR 47.5 billion for H1 2026.

Profit attributable to shareholders for H1 2026 was MYR 22.73 billion, down from MYR 23.64 billion for H1 2025.

"The global energy landscape remains fragile and uncertain amid elevated geopolitical headwinds and prolonged West Asia conflict", Petronas said. "These conditions continue to influence prices, trade flows and cost structures, creating a challenging operating environment and cost pressures across the value chain".

"In strengthening regional and global energy security, Petronas has achieved significant milestones across its integrated portfolio. These include the establishment of 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", it added.

"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".

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