KUALA LUMPUR – February 29, 2016: Petronas, the state oil firm, will initiate several cost-reduction measures due to the continued depressed global crude oil prices.
According to president and group chief executive Datuk Wan Zulkiflee Wan Ariffin, the measures were a result of the company’s tepid financial performance last year and in anticipation of what is expected this year and in 2017.
At today’s press conference here to announce the Petronas financial results for last year, Wan Zulkiflee said the revenue of RM248 billion that was achieved in an “extreme 2015” was 25 per cent lower than that for 2014.
The steps to be undertaken include a reduction in the capital expenditure (capex) and operating expenditure (opex) of RM50 billion over the next four years, starting with RM15 to RM20 billion this year.
“These cuts will impact some of our capital projects. At this point, we have taken the decision to re-phase the Petronas Floating LNG 2 Project, to be commissioned at a later date than originally planned.”
The company has also completed a review of its business operating model to facilitate higher efficiency levels and robustness in the organisation. This will result in a new organisational structure effective this April 1.
“I am confident of our internal initiatives laid out to strategically respond to the external challenges.
“These will navigate Petronas securely through the current downturn and position us in a more resilient and competitive stead for future growth,” declared Wan Zulkiflee.