Volatile Market Expected to Continue in 2H

The oil and gas market is expected to continue to be volatile in the second half of 2019 amid protracted trade issues that have spread beyond the United States and China, sluggish oil demand growth as well as the slowing global economy.

That’s according to Petronas, which made the statement in a comment sent to Rigzone on Friday. In the comment, Petronas added that nationalism around the world is expected to remain at the fore, “with protectionist policies detrimental to growth prospects”. 

“These prevailing uncertainties are expected to pose challenges to the overall year-end performance of the Petronas group,” the company stated.

“The group will remain focused on ensuring continuous overall business improvement as well as driving commercial and operational excellence,” Petronas added.

Petronas posted $29 billion (RM121.1 billion) in revenue in 1H 2019, which was an increase of $935 million (RM3.9 billion) from the same period last year. Profit after tax rose nine percent to $6.9 billion (RM28.9 billion) in 1H 2019.

“Petronas continues to deliver a healthy financial performance for the first half of 2019 despite persistent challenging market conditions,” Petronas President and Group CEO, Tan Sri Wan Zulkiflee Wan Ariffin, said in a company statement.

“The results are positive outcomes of the organization’s rallied commitment to constantly strive towards improvements in our operational efficiencies and commercial excellence, while maintaining fiscal discipline throughout the group,” the Petronas head added.

Petronas is a fully integrated oil and gas multinational corporation, according to its website, which highlights that the company traces its roots back to 1974.

To contact the author, email andreas.exarheas@rigzone.com