Malaysia's state oil firm Petronas, or Petroliam Nasional Berhad, on June 7 logged a first-quarter profit and said it anticipates moderating oil and gas prices to squeeze its profitability this year.

Its post-tax profit during the three-month period rose to 23.8 billion ringgit ($5.17 billion), compared with profit of 23.4 billion ringgit in the same quarter a year ago.

Revenue rose to 90.4 billion ringgit ($19.65 billion) compared with 78.2 billion ringgit in the same quarter last year, but dropped 15% from the fourth quarter of 2022.

Petronas said the better revenue performance was due to improved sales volumes and favorable impact from foreign exchange, although it was offset by lower average realized prices from major products.

"Oil and gas prices are expected to moderate due to continued economic uncertainties, hence lower profitability is anticipated compared to last year," the firm said.

Capital investments amounted to 10.5 billion ringgit, contributed by upstream and gas projects, it said.

Domestic capital expenditure was up by 44% from the same period last year, mainly for its floating liquefied natural gas (LNG) project in Sabah state and the Kasawari gas field development in Sarawak state, it said.

"Given the risk of continued uncertainty and volatility in the business environment, Petronas will maintain a cautious outlook for 2023," it added.