Malaysia's state energy firm Petroliam Nasional Bhd. (Petronas) reported on Thursday a jump of 23 percent in 2006 full-year profit, spurred by soaring crude oil prices and strong demand.
It was another record-breaking year for the nation's largest and most-profitable company, delivering a financial windfall as well as a new headache for the government. Petronas said it posted a record net profit of $11.6 billion for the year ended March 31, after Malaysian crude prices surged 37 percent in the financial year.
But Chief Executive Hassan Marican offered little clue on the outlook for this year or market direction. "I don't have a crystal ball. I don't comment on prices," he told reporters. Analysts said Petronas results met market expectations.
"Exploration and production companies with strong reserves like Petronas should make significant profit in this upcycle," said Royston Quek, credit analyst at rating agency Standard and Poor's.
S&P rates Petronas on par with the government at A-minus with stable outlook. Quek said the rating for Petronas would not be raised unless Malaysia's rating was raised.
Hassan said Petronas, as a company, would return to the government some 41.7 billion ringgit in the year just ended, up a whopping 33.6 percent from a year earlier. This excludes another 14.3 billion ringgit in direct gas price subsidies, he said.