KUALA LUMPUR – The offer of a position to any individual will not affect market confidence in Petronas, said Minister in the Prime Minister's Department (Economy), Datuk Seri Mustapa Mohamed.
This is because Petronas is a company that is well-managed and is led by an efficient management team.
“The confidence of the market as well as investors depend on various factors such as the country's economic growth and global trade which is severely affected by the Covid-19 pandemic.
"This (factor) is compounded by the sharp drop in crude oil prices and the trade war between China and the United States," he said in a written reply in the Dewan Rakyat here, today.
Mustapa was respónding to a question from Lim Guan Eng (PH-BAGAN) who asked to state Petronas’ declining performance, its impact on the country and whether the offer of the position of Petronas chairman to Gua Musang MP Tengku Razaleigh Tengku Hamzah is true and if it is based on a political transaction which affected the market confidence in Petronas.
Petronas, he said, will continue to explore opportunities and new business portfolios to further strengthen its resilience in facing the challenging global market environment especially in renewable energy such as solar and wind power.
“(This) market condition that is challenging and uncertain is expected to continue until the second half of 2020. The projection made by Rystad Energy in April 2020 expected global oil and gas companies to record an income loss of US$1 trillion this year following the prevailing market situation.
“In this matter, as a national oil and gas company, Petronas continues to be committed in efforts to maintain its income flow and optimise cost to balance the negative effects of low crude oil price on its profitability, at the same time, safeguard the nation’s strategic interest,” he said. – Bernama, December 2, 2020
