KUALA LUMPUR: Despite falling profits, Petronas has no plans to lay off any of its 50,000 local and overseas staff.
Deputy Minister in the Prime Minister's Department Datuk Razali Ibrahim said the national oil company need not downsize its staff strength so as to enable it meet plans over the next five years.
"I can give the assurance that the estimated 50,000 staff employed here and in operations abroad would be maintained.
"If we cut jobs, it would affect Petronas' operations," he told Datuk Seri Reezal Merican Naina Merican in the Dewan Rakyat.
He noted that the jobs would not be affected despite Petronas' plans to reduce its capital expenditure by 15% and operational expenditure by between 15% and 30% over the next five years.
"In fact, Petronas needs personnel to better operate here and its international operations," he added.
Reezal had asked of Petronas' plans following a 41% drop in profits, saying: "When Petronas sneezes, there is no denying Malaysia will get a cold."
Razali acknowledged that Petronas' profit would, as expected, take a dip due to lower oil prices, which will affect its dividends contribution to the Government.
He said profits - RM73bil in 2013 and RM75bil last year - is expected to dip to RM53bil this year.
However, the company has drawn up a five-year plan to remain competitive, taking into account fluctuations in global oil prices.
Petronas recorded a net profit of RM11.4bil in the first quarter ended March 31 compared to RM18.8bil a year ago.
The national oil company noted that the drop was due to a 50% drop in benchmark crude price, but partly offset by higher oil and LNG sales volume and stronger US dollar.
Revenue for the quarter fell 21% to RM66.2bil from RM84bil a year ago.
Limited time offer:
Just RM5 per month.
