Sabah's SMJ Energy profit surges to RM362mil despite market headwinds
KOTA KINABALU: SMJ Energy must remain vigilant amid ongoing market uncertainties, despite a 40 per cent jump in profit, said state Finance Minister Datuk Seri Masidi Manjun.
The state-owned company announced its unaudited financial results for the year ended Dec 31, 2024, reporting a profit after tax of RM362 million, up from RM259 million in 2023.
Masidi, who is also SMJ Energy chairman, attributed the achievement to a professional and dedicated team working in close collaboration with key stakeholders, including Petronas.
He added that the company's financial position is expected to remain strong even in a low oil price environment, thanks to a balanced portfolio comprising upstream, liquefied natural gas (LNG), petrochemical, floating production storage and offloading (FSPO) and floating storage operations (FSO) assets.
SMJ Energy's revenue also surged year-on-year, driven by strong contributions from flagship assets such as the Samarang production sharing contract, LNG Train 9 liquefaction plant, Petronas Chemical Fertilizer Sabah Sdn Bhd, and FPSO and FSO under the debt-free Sabah International Petroleum.
"This result demonstrates the company's resilience despite volatile global energy markets, underpinned by strategic asset optimisation, disciplined cost management and strong revenue growth.
"The volatility in global oil markets highlights the importance of maintaining our proactive risk management and prudent investment strategies," he said in a statement, referring to external factors such as the ongoing global tariff war and fluctuating oil prices that could impact the company.
In addition to building a profitable oil and gas business, SMJ Energy is actively supporting the state's efforts to increase local content in Sabah's oil and gas services and equipment sector, without compromising on cost, safety, quality or project timelines.
The total value of jobs awarded to Sabahan companies reached RM2 billion last year, up from RM613 million in 2021.
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