Malaysia’s Petronas may be planning another round of job cuts as oil prices continue to hover under the $50 per barrel mark.
Sources told the Wall Street Journal that Petronas is planning to cut several hundred jobs at its publicly listed operations.
Petronas told the Journal that it “continually reviews” its strategies and headcount and that the “transformation exercise cuts across the entire Petronas group, including at subsidiary levels.”
Petronas’s three major listed business units are Petronas Chemicals Group, Petronas Gas Bhd. and Petronas Dagangan, a gasoline station operator.
Petronas said in March that it plans to cut under 1,000 positions.
No timeline for the cuts was disclosed.
The company added that it was undertaking “exhaustive efforts” to “re-deploy affected employees.”
That same month, Petronas chairman and CEO Datuk Wan Zulkiflee warned that 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 reported $12.02 billion in second quarter revenues last month, a 21 percent year-over-year decline.
Before tax profit fell to $810 million in the second quarter compared to $3.63 billion in profit in the prior year quarter.
After-tax profit slid to $400 million in the second quarter from $2.75 billion in the year-ago quarter.
The company said last month that “volatile oil prices coupled by oversupply and lagging growth demand continued to impact the Group’s half year performance as compared to the same period last year.”
Petronas added that despite a “modest” crude price recovery earlier this year, “uncertainties remain due to persistent oversupply and sluggish demand outlook.”