Petronas, Malaysia’s state-owned oil and gasoline firm, will lower about 10% of its workforce in a firm-wide restructuring because it seems to be to scale back prices as a consequence of falling crude costs.
The corporate will cut back headcount by greater than 5,000 individuals, and all these affected shall be knowledgeable in levels by way of subsequent 12 months, Chief Govt Officer Muhammad Taufik stated in a briefing in Kuala Lumpur on Thursday. It’s going to additionally freeze hiring till December 2026, he stated.
“The margins are shrinking, the fields are getting smaller,” Taufik stated. “Will probably be difficult to satisfy dividend targets” with present oil costs, he stated.
The oil value droop — coupled with declining output from its older belongings — will pose a problem for Malaysia’s authorities, which derived 10% of its income from Petroliam Nasional Bhd., the complete identify of the corporate, in 2024. The vitality producer not solely anchors the nation’s vitality sector, but in addition performs a key function in funding infrastructure, training, and social packages by way of dividends and taxes.
Petronas units its funds primarily based on the Brent oil at round $75 to $80 per barrel, Taufik stated. The worldwide benchmark is at present buying and selling close to $65, down about 13% this 12 months, as commerce tensions threaten world development, and OPEC+ restores manufacturing.
Petronas’ web revenue slid 32% in 2024, following a 21% drop in 2023.
Generated by readers, the feedback included herein don’t mirror the views and opinions of Rigzone. All feedback are topic to editorial assessment. Off-topic, inappropriate or insulting feedback shall be eliminated.
