MOSCOW (MRC) -- Malaysia's state-owned Petroliam Nasional Berhad (Petronas) will axe 1,000 positions over the next six months amid a restructuring exercise and management shake-up, as per TPS with reference to the company's statement.
This announcement was made following the company's Monday statement, that its revenue had tumbled 25%, with its profit after tax plunging 56% in 2015.
Petronas expects its new company structure, designed for flatter, leaner, more efficient operations, to navigate the business through tough external environments. This company restructuring is expected to make 1,000 positions redundant over the next six months.
The company reported on Monday lower 2015 revenue and profit after tax, amid a depressed oil price environment and net impairment on assets. Its revenue of Ringgit 248 billion (USD59.66 billion) in 2015 was a 25% decline compared to the same period in 2014.
Its after tax profit, and excluding identified items, were logged at RM 21 billion and RM 40 billion respectively, 56% and 42% lower than 2014.
The company anticipates its financial performance for 2016 to continue to be affected by prolonged volatility in oil prices, and is making plans to remain competitive and sustainable.
Petronas anticipates that the next two years would continue to be challenging, with the company's cash flow from operations unlikely to be able to cover its remaining capital expenditure and its Ringgit 16 billion dividend commitments to the Malaysian Government, according to Petronas President and Group CEO Wan Zulkiflee Wan Ariffin.
As MRC informed previously, in December 2015, Petronas awarded the Johor port operatorship for its Refinery and Petrochemicals Integrated Development (RAPID) project to Johor Port Bhd (JPB). As the port operator, JPB will manage the operations and logistics functions at the material offloading facility (MOLF) for Petronas’ Refinery and Petrochemicals Integrated Development (RAPID) project in Pengerang. RAPID is Petronas’ largest green-field downstream undertaking in Malaysia, and along with its six major associated facilities, forms the Pengerang Integrated Complex.
Petronas plans to build a C6-based metallocene linear LDPE plant and a low density polyethylene (LDPE)/ethylene vinyl acetate (EVA) swing plant at its greenfield integrated refinery and petrochemical complex in southern Johor state by mid-2019. The proposed metallocene LLDPE will have a capacity of 350,000 tpa, while the LDPE/EVA will have a capacity of about 150,000 tpa. The two plants are part of Petronas' planned Refinery and Petrochemical Integrated Development project in Pengerang at Johor. RAPID includes a 300,000 bpd refinery and a petrochemical complex with a 3 million tpa steam cracker, and is expected to come onstream in mid-2019. The petrochemical complex will have the capacity to produce 7.7 million tpa of petrochemical products.
Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.
MRC