Malaysia’s Petronas slashed its 2015 capital expenditures budget Thursday after booking a $2 billion fourth quarter loss, the company’s first loss since it began reporting quarterly results five years ago.
The state owned company reported a $2.03 billion net loss during the fourth quarter, a steep drop from the $3.54 billion profit booked during the same period in 2013.
The loss was tied to lower oil prices and a $6.2 billion non-cash impairment charge.
“Since we began reporting our quarterly earnings five years ago, in my memory we have never reported a quarterly loss,” Petronas chief Shamsul Azhar Abbas said.
Petronas saw fourth quarter revenue fall to $21.96 billion from $23.48 billion in the fourth quarter 2013.
“Petronas Group is taking steps to reduce its planned capital investments and operating expenditure in order to mitigate the potential adverse effect on its profitability and cash flows,” the company said.
The copmnay cut its 2015 capital expenditure program by 10 percent and slashed operating expenses by 30 percent.
Petronas also trimmed its 2016 capital expenditure budget by 15 percent, Reuters said.
The company said it will revise its 2015 budget to accommodate expected oil prices of about $55 per barrel..