Last updated Friday, August 26, 2016 12:51 pm GMT+8

Monday February 29, 2016
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Petronas announced it recorded after-tax profit of RM21 billion for 2015, 56 per cent lower than the previous year. — Picture by Yusof Mat IsaPetronas announced it recorded after-tax profit of RM21 billion for 2015, 56 per cent lower than the previous year. — Picture by Yusof Mat IsaKUALA LUMPUR, Feb 29 — Petronas recorded after-tax profit of RM21 billion for last year, 56 per cent lower than in 2014 amid a global oil plunge.

The state oil firm also announced today that company restructuring would take effect on April 1, but declined to specify if it involved job cuts.

“I’ll want to share with the organisation first. After that, we’ll do a media announcement,” Petronas Group CEO Datuk Wan Zulkiflee Wan Ariffin told a press conference here, in response to a question on the company restructuring.

The state oil firm’s revenue for the 2015 financial year was RM248 billion, marking a 25 per cent decline compared to the previous year, with Brent price averaging at US$52 a barrel for 2015, 47 per cent lower than the average oil price of US$99 a barrel in 2014.

Wan Zulkiflee said the company has taken further cost-optimisation measures, amid its projection of oil prices at US$30 a barrel this year.

“These include additional reduction in CAPEX and OPEX of RM50 billion over the next four years, starting with RM15 to RM20 billion in 2016,” Wan Zulkiflee said, referring to capital and operational expenditure respectively.

He also said Petronas’ cash flow from operations was unlikely to be able to cover the remaining capital expenditure and the company’s RM16 billion dividend commitments to the government this year.

Petronas’ cash flow from operations dropped by 33 per cent to RM69.6 billion in 2015 from RM103.6 billion in 2014.

According to Wan Zulkiflee, Petronas would have to draw down on cash reserves and may possibly need to borrow money to cover the remaining capital expenditure and meet its dividend commitments.

But he affirmed that Petronas would be paying RM16 billion to the government this year.

Petronas also announced an increase in upstream production by three per cent compared to 2014, driven by enhanced production and new production streams from Malaysia and Indonesia, and additional production from Azerbaijan.

“The Pengerang Integrated Complex project is progressing as planned with the refinery and steam cracker construction on track,” said Wan Zulkiflee.

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