Business

Petronas subsidiaries trade mixed following workforce reduction announcement

Oil giant confirms 10 per cent staff cut as part of cost measures amid falling crude prices and weak market outlook

Updated 1 year ago · Published on 06 Jun 2025 11:08AM

Petronas subsidiaries trade mixed following workforce reduction announcement
The group announced the restructuring on Thursday, citing “challenging operating conditions” - June 6, 2025

SHARES of Petroliam Nasional Bhd’s (Petronas) listed subsidiaries on Bursa Malaysia’s benchmark index saw mixed performance in early trading Friday, following confirmation that the national oil company will reduce its workforce by 10 per cent amid deteriorating market conditions.

At 10.24 am, MISC Bhd remained unchanged at RM7.60, while Petronas Dagangan Bhd fell 10 sen to RM21.04 and Petronas Chemicals Group Bhd slipped 6 sen to RM3.30. Petronas Gas Bhd also traded flat at RM18.18.

The group announced the restructuring on Thursday, citing “challenging operating conditions,” particularly falling crude oil prices, as the impetus for the move.

Petronas president and group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz said, “The number of staff involved in the right-sizing process currently stands at around 5,000. Those affected will be notified in stages next year.”

He also confirmed that the company will implement a freeze on both promotions and new hires until December 2026.

Petronas has reportedly based its internal budget on Brent crude oil trading between US\$75 and US\$80 per barrel. However, prices have recently dropped to around US\$65 per barrel—down approximately 13 per cent this year—driven by global trade uncertainties and rising production among OPEC+ members.

The group recorded a net profit of RM55.1 billion for the financial year ended 31 December 2024, representing a 31.7 per cent decline from RM80.7 billion in 2023. The drop was attributed to lower average realised prices and the absence of one-off favourable tax adjustments seen in the previous year. - June 6, 2025

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