Insight

The impact of low oil prices and the depreciated ringgit on PETRONAS

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The low oil-price environment is challenging for oil exporters globally. While we expect currency weakness and government spending cuts to be a feature of the Malaysian economy in 2015, GDP growth is expected to remain strong. The weaker ringgit may be Malaysia's saving grace. In comparison to many other oil exporters, Malaysia has a diversified economy that becomes more competitive as the ringgit depreciates.

Table of contents

    • The ringgit has weakened with lower oil prices
      • Crude oil price and the ringgit
    • A weakening ringgit softens the blow of lower oil prices but places a greater burden on PETRONAS
    • PETRONAS' cash flow will be hit and balance sheet looks set to take the strain
    • Increasing focus on costs - expenditure on international portfolio under scrutiny
    • Cuts to domestic expenditure is also on the drawing board
      • Upstream
      • Downstream
    • Conclusion

Tables and charts

This report includes 7 images and tables including:

  • The impact of low oil prices and the depreciated ringgit on PETRONAS: Image 2
  • The impact of low oil prices and the depreciated ringgit on PETRONAS: Image 3
  • The impact of low oil prices and the depreciated ringgit on PETRONAS: Image 4
  • The impact of low oil prices and the depreciated ringgit on PETRONAS: Image 5
  • The impact of low oil prices and the depreciated ringgit on PETRONAS: Image 6
  • The impact of low oil prices and the depreciated ringgit on PETRONAS: Image 7
  • The impact of low oil prices and the depreciated ringgit on PETRONAS: Image 1

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    The impact of low oil prices and the depreciated ringgit on PETRONAS

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