KUALA LUMPUR, Feb 27 — Petroliam Nasional Bhd’s net profit decreased by 18 per cent to RM45.4 billion in the financial year ended Dec 31, 2025 (FY2025), from RM55.1 billion in the previous financial year.

The decline was in line with lower revenue, partly offset by lower tax expenses, said its executive vice president and group chief financial officer, Liza Mustapha.

She said the oil corporation also posted lower revenue of RM266.1 billion from RM320 billion previously due to lower average realised prices, lower sales volume, foreign exchange impact, and the divestment of Engen Group. 

“Notwithstanding the challenging market conditions, the financial results for 2025 were supported by the business’s efforts in sharper execution of both operational and commercial activities,” said Liza during the Petronas Group financial results announcement here today. 

In 2025, the upstream business achieved a reduction of RM3 billion in operating expenses, primarily due to improvements in operational methods and consistent optimisation efforts.

“This underscores our clear focus on strategic cost management. Upstream business also continues to strengthen resilience through strategic growth by expanding operations in Malaysia through three new offshore Sabah blocks,” she said. 

Liza highlighted that internationally, Petronas is deepening its footprint across Suriname, Guyana, the Middle East and Southeast Asia.

She said the group’s overall capital expenditure stood at RM41.6 billion in 2025, with 60 per cent attributable to activities in Malaysia, while total borrowing stood close to RM122 billion last year. 

“Despite the market headwinds, the group ended the year with total assets at RM775 billion, which strengthened from RM767 billion as of Dec 31, 2024, while shareholders’ equity reduced to RM448 billion,” said Liza.

She said cash flows from operating activities stood at RM85.2 billion, aligned with lower earnings before interest, taxes, depreciation, and amortisation (EBITDA).

Meanwhile, in a statement today, Petronas president and group chief executive officer, Tan Sri Tengku Muhammad Taufik Tengku Aziz, said geopolitical headwinds in the industry are expected to persist.

“To contend with these developments, Petronas will double down on measures to reinforce our portfolio and financial strength – paving the way for this institution to continue delivering energy and solutions safely, reliably and responsibly to those we serve,” he said. 

Tengku Muhammad Taufik said Petronas is looking at all avenues to strengthen its portfolio and balance sheet. 

Looking ahead to 2026, Petronas remains focused on scaling value-accretive energy investments and lower-carbon solutions to advance its energy transition agenda. — Bernama