Petronas reported a net loss of RM2.96 billion for the October-December period, compared with a loss of RM7.3 billion a year ago, while revenue fell 24% from the corresponding period a year ago to RM60.1 billion.
However the announcement was not as shocking to the general public, at least not as much as when the Q3 2015 results were announced.
Almost everyone in the industry has been speculating about the actual losses, the size of possible lay-offs, and the generally negative prospects of the O&G sector all ever since the less than sterling Q3 performance announced at the end of 2015.
A number of cut backs had already been reported prior to the announcement and the lay-offs were expected as early as December.
It was seen as just getting the actual numbers to confirm what had already been expected, while to some it is just a matter of confirming their fears.
However, the poor results still dominate local and foreign news outlets and have affected investors’ sentiments negatively, while making the prospect extremely grim for those dependent upon contracts involving exploratory and upstream activities.
The KL stock market too was affected; possibly not so much by Petronas’ poor results, but by speculation on crude oil prices after it reached its lowest point of $26 a barrel on February 11th.