Latest news with #MuhammadTaufik
The Sun
3 days ago
- Business
- The Sun
Petronas to cut 10% of its workforce
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) is cutting 10 per cent of its workforce to cope with challenging operating conditions, particularly due to falling crude prices. President/group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz said the number of staff involved in the right-sizing process currently stands at around 5,000, and those affected will be notified by the end of this year. 'Petronas 2.0 will be run differently, organised differently, will have different work processes, and to move towards that, we have to correct the work process,' he said at a media briefing here today. He said the group aimed for a lean and nimble operation even if oil prices were to reach US$100 per barrel. (US$1 = RM4.23). 'There is a logic, an assumption set, and a projection that backs it up. Over time, we have seen this—those who have tracked our history will know that when the fields were easier, our profit before tax margin was around 35 to 40 per cent. 'Today, it is (between) 25 and 38 per cent. These margins are going to shrink further, and the fields are going to get smaller. So the value-added (Petronas) 2.0 has to transform into an organisation that monetises molecules commercially and competitively, not just at home, but also abroad,' he said. Petronas has based its budget on Brent crude trading between US$75 and US$80 per barrel. The benchmark is currently near US$65, down roughly 13 per cent this year, amid global trade tensions and rising OPEC+ output. The group reported a net profit of RM55.1 billion for the financial year ended Dec 31, 2024, down 31.7 per cent from RM80.7 billion a year earlier, due to lower average realised prices and favourable tax adjustments in 2023. On Petronas Petroleum Sarawak Bhd (Petros), Tengku Muhammad Taufik voiced concern over the uncertainty surrounding a deal between the two parties, adding that Petronas remains open to further negotiations on its role in the state. 'I'm concerned that if the deal is delayed—or unduly delayed—it will have an impact,' he added. On May 21, 2025, Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Tan Sri Abang Johari Tun Openg signed a Joint Declaration stating that Petronas will continue to carry out its functions, activities, responsibilities and obligations under the Petroleum Development Act 1974 (PDA 1974) and related regulations. According to the Prime Minister's Office, key principles have been agreed to support further negotiations between Petronas and Petros. The Joint Declaration acknowledges both federal and state laws, the status of existing agreements, and the need for a cooperative framework between the two parties. Under the declaration, the Sarawak state government has appointed Petros as the gas aggregator effective March 1, 2025. Petronas and Petros will also enter discussions to expand cooperation in meeting Sarawak's gas requirements across several areas. ALSO READ: Petronas not exiting Canada, says group CEO
The Star
3 days ago
- Business
- The Star
PETRONAS to cut 10% of workforce after profits slump
PETROLIAM Nasional Bhd. will cut about 10% of its workforce in a firm-wide restructuring as the company looks to reduce costs due to falling crude prices and market volatility that has impacted its profits. Malaysia's state-owned oil firm will reduce headcount by upward of 5,000 people, Petronas Chief Executive Officer Muhammad Taufik said in a briefing in Kuala Lumpur on Thursday. It will also freeze promotions and hiring until December 2026, he said. Petronas' profits slid 32% in 2024, following a 21% drop in 2023. The challenges are slated to continue this year, in part due to a continued decline in Brent crude prices. - Bloomberg
Straits Times
3 days ago
- Business
- Straits Times
Malaysia's Petronas to cut 10 per cent of workforce after profits slump
Malaysia's state-owned oil firm will reduce headcount by upward of 5,000 people. PHOTO: REUTERS Malaysia's Petronas to cut 10 per cent of workforce after profits slump Petroliam Nasional (Petronas) will cut about 10 per cent of its workforce in a firm-wide restructuring as the company looks to reduce costs due to falling crude prices and market volatility that has impacted its profits. Malaysia's state-owned oil firm will reduce headcount by upward of 5,000 people, Petronas chief executive Muhammad Taufik said in a briefing in Kuala Lumpur on June 5. It will also freeze promotions and hiring until December 2026, he added. Petronas' profits slid 32 per cent in 2024, following a 21 per cent drop in 2023. The challenges are slated to continue in 2025, in part due to a continued decline in Brent crude prices. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Yahoo
3 days ago
- Business
- Yahoo
Malaysia's Petronas to cut 10% of workforce, not exiting Canada, CEO says
By Ashley Tang KUALA LUMPUR (Reuters) -Malaysian state energy firm Petroliam Nasional, or Petronas, will retrench about 10% of its workforce in a restructuring exercise, its chief executive said on Thursday. Tengku Muhammad Taufik also denied at a media briefing that the state firm was exiting its business in Canada. Local media has previously reported Petronas as saying it needed to "rightsize" its workforce to ensure the company's survival in the coming decades. Petronas has nearly 50,000 employees, according to its website. Bloomberg had reported earlier on Tuesday that Petronas is considering a sale of its Canadian company, formerly known as Progress Energy Resources Corp. "Canada is crucial to our ambitions to preserve our position in the liquefied natural gas space," Tengku Taufik said.
Business Times
3 days ago
- Business
- Business Times
Malaysia's Petronas to cut more than 5,000 jobs after profits slump
Malaysia's state-owned oil firm will reduce headcount by upward of 5,000 people, Petronas chief executive officer Muhammad Taufik said in a briefing in Kuala Lumpur on Thursday (Jun 5). It will also freeze promotions and hiring until December 2026, he said. Petronas' profits slid 32 per cent in 2024, following a 21 per cent drop in 2023. The challenges are slated to continue this year, in part due to a continued decline in Brent crude prices. BLOOMBERG
