MALAYSIA: Petroliam Nasional Berhad (Petronas) has joined other companies in announcing job cuts as part of its efforts to reallocate resources and aggressively eliminate inefficiencies, said Petronas chief executive officer Tengku Muhammad Taufik Tengku Aziz, Reuters reported.
On Tuesday (Feb 25), Malaysia’s state energy company reported a profit after tax of RM55.1 billion (S$16.69 billion) for 2024, down from RM80.7 billion (S$24.44 billion) the previous year, citing global volatility and lower oil prices due to geopolitical tensions and economic uncertainty.
The company’s revenue also fell to RM320 billion (S$96.91 billion) in 2024, down from RM343.6 billion (S$104.06 billion) in 2023. Despite lower earnings, capital investments rose slightly to RM54.2 billion (S$16.41 billion) from RM52.8 billion (S$15.99 billion) the year before.
Mr Tengku Aziz said the oil and gas industry is facing challenges from deglobalisation; criticism of environmental, social, and governance (ESG) efforts; and the risk of a prolonged trade war.
Speaking at a press conference, he said this period of uncertainty is expected to continue well into 2025 and beyond.
To manage the impact, Petronas plans to maximise the potential of its existing assets while maintaining prudent financial management. It is also investing in key projects, including a joint-venture liquefied natural gas (LNG) plant in Canada and upstream developments in Angola and Indonesia.
As for the planned job cuts, Mr Tengku Taufik said that the company, which has nearly 50,000 employees according to its website, will begin reducing its workforce in phases from the second half of 2025, although he did not disclose how many employees would be affected. /TISG