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Image courtesy of Petronas.

Malaysia’s Petronas said Tuesday that it will cut up to 1,000 jobs after reporting a 56 percent drop in full year after-tax profits.

The company expects to cut under 1,000 positions and said it is undertaking “exhaustive efforts” to “re-deploy affected employees.”

Further details about the layoffs have not been disclosed.

Petronas added that it will “further embark on a separation exercise for these employees as needed, which is expected to be completed over the next six months.”

Petronas booked $59 billion (RM248 billion) in revenues for the full year of 2015, down 25 percent year-over-year.

Full year after-tax profit came in at $5.06 billion, down 56 percent from the prior year, while profit after-tax excluding identified items fell 42 percent year-over-year to $9.64 billion.

“The company anticipates its financial performance for 2016 to continue to be affected by the prolonged volatility in oil prices and is intensifying efforts to cushion the impact to remain competitive and sustainable,” the company said.

The company’s upstream production grew 3 percent from 2014 levels thanks to enhanced production and new production streams from Malaysia and Indonesia along with additional production from Azerbaijan.

However, low oil prices dragged the company’s upstream after-tax profit down to $4.72 billion (RM19.6 billion) for 2015, a 64 percent decline from the previous year.

Non-cash impairments of $4.33 billion pulled upstream profits down by an additional $385 million for the full year.

The company’s downstream business saw its full year profit margin rise 50 percent from the prior year to $2.14 billion (RM8.9 billion).

Chairman and CEO Datuk Wan Zulkiflee said the company’s cash flow from operations “is unlikely to be able to cover the remaining CAPEX and its RM16 billion dividend commitments to the Government.”

Petronas will reduced its capital expenditure and operational expenditure budgets by about $12 billion over the next four years, beginning with reductions of between $3.62 billion to $4.82 billion in 2016.

“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,” Datuk Wan Zulkiflee said.