Petronas president and group CEO Tan Sri Shamsul Azhar Abbas said the improved performance however was partially negated by higher amortization expenses, higher impairment losses on property, plant and equipment as well as lower gain on disposal of investments and property, plant and equipment in the current.
Petronas' revenue increased 15% to RM85.4 billion from RM74.4 billion benefited from higher oil and gas production volume mainly from Iraq, South Sudan and domestic fields, higher liquefied natural gas (LNG) sales volume on the back of stronger demand from customers and higher processed gas sales volume driven by higher gas supply from the importation of LNG via the re-gasification terminal (RGT) in Melaka, coupled with favourable exchange rate.
Its upstream segment saw higher revenue of RM52.2 billion in the quarter from RM40.1 billion contributed by higher entitlement volume for all products in line with higher production.
Downstream revenue, however was down by RM1.5 billion to RM39.9 billion in the second quarter due lower crude trading and petrochemical sales volume.
Capital investments in the second quarter of 2014 totalled RM13.4 billion, compared to RM11.8 billion in the same period last year.
For the six months ended June 30, 2014, Petronas' net profit rose 12% to RM39.8 billion from RM35.6 billion while revenue advanced by 12% RM169.4 billion from RM151.1 billion.
He said the national oil company's total production volume increased 6% to 2,234 thousand barrel of oil equivalent (boe) per day compared to 2,115 thousand boe per day.
During the period, he said Petronas discovered 12 exploration discoveries, of which 9 locally and three internationally.
Shamsul Azhar said Petronas also plans to increase it overseas net profit contribution to 20% over the next five years from the current 11%.
As for the refinery and petrochemical integrated development (Rapid) in Pengerang, Johor, he said the national oil company has awarded 11 contracts worth RM30 billion mainly for infrastructure development.
Petronas foresees a challenging business environment in the second half of this year due to volatility in crude oil prices.Average crude oil price for the first six month was US$108 a barrel.
Shamsul Azhar said crude oil prices is likely to fall below US$100 a barrel due to robust supply pressures on crude oil price even as demand grows.
"It (will not be surprising) for oil price to go below or remain at US$100 a barrel. It is safe to say oil prices are likely to move between US$95 to US$100 per barrel (in the second half). Things will not be easy but we are lucky if we can achieve PBT of RM94.6 billion in 2014 (for the full year).
"It is getting harder to develop oil and gas, and costs continue to increase," he added.
On its integrated liquefied natural gas project in Canada, Shamsul Azhar said China has given the approval for its state owned company Sinopec Group-Huadian joint venture to become a strategic partner with a 15% stake acquisition.
He said its current partners include Japan Petroleum Exploration and Indian Oil Corp Ltd, where both hold 10% each in the project while Petroleum Brunei 3%.
"We are not in hurry to sell down our stake in Canada LNG project. Currently, we are in negotiations with three or five potential buyers (to pare down stake in Canada LNG project)," he told reporters after revealing its financial performance for second quarter ended June 30, 2014 here yesterday.
Petronas has a 62% stake in the Canada LNG project.