Petronas to slash staff by 30%

[size=150][b]You think Shell is the only on cutting staff?..PETRONAS IS CUTTING MORE!!!..HALF YEAR EARNINGS ARE DOWN NEARLY 50%

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http://www.upstreamonline.com/live/article181895.ece
Petronas looks to cut cost by 30%

Petronas plans to slash its expenditure by 30% from the amount it spent in its 2006 fiscal year to arrest a decline in its net profit.

News services Friday, 26 June, 2009, 03:35 GMT

The Malaysian national oil company reported a 14% drop in its annual net profit to 52.5 billion ringgit ($14.9 billion), despite an18.4% revenue hike for the 2009 financial year.

Revenue rose 18.4% to 264.2 billion ringgit, largely thanks to higher liquefied natural gas prices and higher sales of petroleum products.

Higher raw material and service costs, however, have resulted in a lower annual net profit, according to Chief Executive Hassan Marican.

Costs, such as for steel and charges by service providers, remained high and even increased despite a drop in the demand and price of crude oil, the Star newspaper cited Hassan as saying during a press briefing.

While cost cutting would be pursued, Hassan said capital expenditure domestically would not be affected as spending by Petronas had a huge multiplier effect on the Malaysian economy.

We plan to spend the same level this financial year to sustain production levels, he said, adding that spending had to go on regardless of the price of crude oil to continue developing reserves.

Malaysian Tapis crude fetched on average $88 per barrel last year, but has declined to $51.08 in May.

The countrys crude production has fallen from a peak of 700,000 barrels per day to 553,000 bpd in 2009 due to the depletion of its existing reserves.

Oil and gas explorers will need to move to deeper and more remote basins to seek out new discoveries in Malaysia, according to Hassan.

Deep-water oilfields now accounts for 15% of Petronas total reserves.

Petronas has detected signs of sizeable hydrocarbon presence in the South China Sea, which may be the key to counter the 12% decline in the existing reserves on Malaysias continental shelf.

Wells in the deep-water basin, however, cost twice as much to drill than the ones on the continental shelf, according to Hassan.

Hassan said Petronas will be looking into raising funds in the bond market to fund its exploration and production activities.

This is misleading. Cutting cost by 30% doesnt mean also slashing staff by 30%

Unless, you have an insider source. Read carefully.

LOL!

Malaysia’s Petronas says profits nearly halved
Tue Dec 8, 2009 10:59am GMT

  • Petronas profit for April-Sept down 47.7 pct from yr ago

  • Weaker sales volume, prices, falling oil output hit profits

  • Global capex sliding on uncertain global outlook

KUALA LUMPUR, Dec 8 (Reuters) - Malaysia’s state oil firm Petronas [PETR.UL] said on Tuesday profits in the first half of fiscal year 2010 nearly halved as the global recession hit demand and crude oil prices tumbled from year-ago levels.

Petronas’ crude oil output in the country has continued to fall, down to 450,400 barrels per day (bpd) in the April-September period this year, from 485,400 bpd by the earlier fiscal year ending March 2009, it said.

“The decrease in revenue for HY 2009 was mainly due to the overall decrease in product prices and lower sales volume,” Petronas said in a statement.

“(But revenues) were partly mitigated by the weakening of the ringgit against the U.S. dollar.”

Oil firms such as Exxon Mobil Corp (XOM.N) and Royal Dutch Shell Plc (RDSa.L) have suffered from severely reduced earnings due to weaker crude oil prices.

Analysts say though crude prices CLc1 have risen to $74 barrel from a low of less than $33 in December, they are still way below a high of more than $147 touched in July last year.

Unlisted Petronas’ profit for April-September 2009 stood at 20.3 billion ringgit ($5.98 billion) versus 38.6 billion ringgit in the same period a year ago. Revenues dropped 37.5 percent to 98.2 billion ringgit from 157.2 billion ringgit.
http://uk.reuters.com/article/idUKKLR52809420091208

Petronas is also battling with slowing production at home, especially on the continental shelf of Malaysia as ageing fields took their toll after years of steady output. Production is higher in the offshore Borneo island. [ID:nSP430900]

For a factbox on Petronas production and capital expenditure, click, [ID:nKLR11581]

The firm has looked overseas for future growth but with lower crude oil prices, capital expenditure internationally in first half of the fiscal 2010 dived 55.5 percent to 5.5 billion ringgit compared to the same period a year ago.

Petronas’s overall global energy output has also slowed in Africa and the Middle East due to the worldwide economic fallout.

By second-half September, the company’s total oil and gas production was 1.726 million bpd compared to 1.796 million bpd for the fiscal year ending March 31, 2008.

“The decrease in gas production in Africa… (was) driven by decrease in gas demand from domestic buyers in Egypt as well as decline in baseline production rate and higher water cuts in Chad,” the firm said.

[quote=“tokpaya”]This is misleading. Cutting cost by 30% doesnt mean also slashing staff by 30%

Unless, you have an insider source. Read carefully.[/quote]

he (maybe she) just copy paste. he dont have his own view & conclusion. not a real economy analyzer or what ever is it. just a kid you know.

sure or not?
blom kuar news la…

profit down only bah…

[quote=“tokpaya”]This is misleading. Cutting cost by 30% doesnt mean also slashing staff by 30%

Unless, you have an insider source. Read carefully.[/quote]

agreed with u,i read and read and read but not stated there cut staff by 30%.luckly i havent foward it to all…

“You think Shell is the only on cutting staff?..PETRONAS IS CUTTING MORE!!!..HALF YEAR EARNINGS ARE DOWN NEARLY 50%”

Do you think he felt offended because “Shell is the only cutting staff?”

first it’s shell lay off staff

next
10000 petronas staff being offered VSS

next
Dell penang VSS 700 of it’s staff

Who’s next?