Malaysia’s state energy firm Petroliam Nasional Bhd reported on Tuesday a drop in profit in 2024 compared to a year ago, amid global volatility and lower oil prices from geopolitical tension and economic uncertainty, while flagging market challenges ahead. Petroliam Nasional, or Petronas, reported a profit after tax of 55.1 billion ringgit ($12.47 billion) in 2024 compared to 80.7 billion ringgit in 2023.
Revenue in 2024 fell to 320 billion ringgit from 343.6 billion ringgit in 2023.
Capital investments were 54.2 billion ringgit in 2024 compared to 52.8 billion ringgit in 2023.
Petronas Chief Executive Officer Tengku Muhammad Taufik Tengku Aziz said the possibility of deglobalisation, a backlash against environmental, social and governance efforts, and the threat of a prolonged trade war were ongoing challenges that have impacted the oil and gas industry.
“We anticipate this period of uncertainty will carry on well into 2025 and beyond,” Tengku Taufik told a press conference.
He said Petronas will navigate the challenges by maximising the potential of its assets and through prudent financial management. Petronas is committed to “future-proofing” its portfolio through strategic investments in a liquified natural gas plant joint-venture in Canada as well as upstream ventures in Angola and Indonesia, Tengku Taufik added. The state energy firm, Tengku Taufik said, will also need to reallocate its resources and aggressively eliminate inefficiencies as it announced plans to reduce its workforce.
Tengku Taufik said the reduction in Petronas’ workforce was expected to begin in phases from the second of half of this year, without specifying how many employees it would affect.
Petronas has nearly 50,000 employees, according to its website.
(Reporting by Danial Azhar; Editing by Martin Petty)