Petronas is now coming out with statements saying that it is not swimming in profits because of the surge in oil prices.
“At first glance, there may be profits in the upstream sector, but in the midstream and downstream segments, input costs — including crude oil purchases, refining and processing — also increase significantly when energy prices rise,” The company’s group CEO Tengku Muhammad Taufik Aziz saidsaid in an interview with RTM .
I don't know about you, but I don't find its explanation convincing at all.
If my business is to sell pisang goreng , and the price of pisang goreng doubled tomorrow , and there is no reduction in the pisang goreng I can supply or any reduction in demand for my pisang goreng, if I am not swimming in profit, would anybody believe me ?
Petronas is trying to justify saying that it is not swimming in profit because there has been an increase in cost because of the energy crisis.
It says that the cost of such things as insurance and logistics has increased since the war in Iran began, but it is refusing to give any figures. All it is giving is just words, as if it is our due to just trust what it says.
The problem however is that we don't find it easy to believe the things that Petronas is saying.
The reason we don't find it easy is because it is defying common sense.
We understand that PETRONAS both sells energy as well as buys energy.
We also understand that because of the war in Iran, the cost of buying energy might have increased.
At the same time , we also know that for the very same reason, it's profit from selling energy must have skyrocketed.
We also know that PETRONAS sells more energy than it buys, so whatever increase in cost it incurred in buying energy must have been offset by the profit it made in selling energy.
Not only the logic of ordinary people is saying this, but international investment agencies like Nomura is also saying this.
So on the net, this energy crisis should have given PETRONAS an increase in net profit.
If it hasn't given PETRONAS an increase in net profit, then the top executives in PETRONAS should be fired, because even a stump of wood should have been able to make a profit under such a advantageous circumstances.
To be more convincing, perhaps PETRONAS should just give us all a simpler and more straightforward explanation using figures instead of giving us a long and vague explanations using words .
Why not just say, that before the war in Iran started in Feb 28, its cost per month was 10 billion ringgit and its revenue was 12 billion, so its net profit was 2 billion per month. ( Note: the figures given here are an example only)
After Feb 28, its cost per month is now 20 billion , its revenue is 25 billion, so its net profit is now 5 billion. ( Again , the figures given here is just an example to illustrate a point.)
Why not just cut to the chase and just give the people the figures in a simple and straightforward fashion, so that we can judge for ourselves as to whether Petronas has done enough for the the people and the country, in this time of difficulties.
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