Sign Up for FREE Daily Energy News
Canadian Flag CDN NEWS  |  US Flag US NEWS  | TIMELY. FOCUSED. RELEVANT. FREE
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • youtube2
BREAKING NEWS:

Copper Tip Energy Services
Hazloc Heaters
Copper Tip Energy
Hazloc Heaters


Petronas to Cut 10% of Workforce on Profit Slump


These translations are done via Google Translate

By Ram Anand

workers at a petroliam nasional bhd. site in johor, malaysia 1200x810

Workers at a Petroliam Nasional Bhd. site in Johor, Malaysia. Photographer: Ore Huiying/Bloomberg


Get the Latest US Focused Energy News Delivered to You! It's FREE: Quick Sign-Up Here


Petronas, Malaysia’s state-owned oil and gas company, will cut about 10% of its workforce in a firm-wide restructuring as it looks to reduce costs due to falling crude prices.

The company will reduce headcount by more than 5,000 people, and all those affected will be informed in stages through next year, Chief Executive Officer Muhammad Taufik said in a briefing in Kuala Lumpur on Thursday. It will also freeze hiring until December 2026, he said.

“The margins are shrinking, the fields are getting smaller,” Taufik said. “It will be challenging to meet dividend targets” with current oil prices, he said.

Tarco | Delivering Engineered Solutions
MicroWatt Controls: Instrumentation & Safety System Experts
GLJ

The oil price slump — coupled with declining output from its older assets — will pose a challenge for Malaysia’s government, which derived 10% of its revenue from Petroliam Nasional Bhd., the full name of the company, in 2024. The energy producer not only anchors the nation’s energy sector, but also plays a key role in funding infrastructure, education, and social programs through dividends and taxes.

Petronas sets its budget based on the Brent oil at around $75 to $80 per barrel, Taufik said. The global benchmark is currently trading near $65, down about 13% this year, as trade tensions threaten global growth, and OPEC+ restores production.

Petronas’ net income slid 32% in 2024, following a 21% drop in 2023.

— With assistance from Anisah Shukry and Netty Idayu Ismail

(Changes timeline for when affected workers will notified in second paragraph after company corrected CEO’s initial statement. A previous version of this story removed a reference to a promotion freeze which was also erroneously mentioned by the CEO and corrected by the company.)

Share This:




More News Articles


GET ENERGYNOW’S DAILY EMAIL FOR FREE