Retooling the human capital equation part of PETRONAS' recovery strategy

"Anchored on our three-pronged growth strategy, PETRONAS will continue to strengthen its resilience and long-term sustainability as a progressive energy and solutions partner enriching lives for a sustainable future."

Announcing the post-COVID recovery plan for Malaysia's fully integrated oil and gas company, Tengku Muhammad Taufik, President and Group CEO, PETRONAS noted that "retooling our human capital equation" is one of the tools of its three-pronged growth strategy.

In a statement sharing the company's financial performance for the first half of the year 2020, he said: “PETRONAS has endured a very challenging first half of the year, and we expect our performance to be affected by the volatility of oil prices which continues to be exacerbated by the uncertainties brought about by the ongoing COVID-19 pandemic. We are committed to undertake all necessary measures in our path to recovery which will involve reshaping our portfolio mix, retooling our human capital equation and emphasising on focused execution with pace.

"Anchored on our three-pronged growth strategy, PETRONAS will continue to strengthen its resilience and long-term sustainability as a progressive energy and solutions partner enriching lives for a sustainable future."

Here are some of the other key workforce-related updates shared at the announcement:

• For the first half of 2020, the Group recorded a revenue of RM93.6 bn, a decline of 23% from RM121.1 bn in the corresponding period last year. The industry is also challenged by the downward revision of price outlook at the back of the current macroeconomic landscape combined with the growing pace of energy transition. 

• Given the lower revenue coupled with the impairment loss, the Group experienced a Loss After Tax (LAT) of RM16.5 bn for the period as compared to Profit After Tax (PAT) of RM28.9 bn in the same period last year. Excluding impairment loss, the Group would record PAT of RM7.7 billion.

• For the quarter ended 30 June 2020, the Group recorded a revenue of RM34.0 bn, lower by 42% from the RM59.1 bn recorded in the second quarter of 2019, predominantly due to lower average realised prices for major products, and lower sales volume mainly from petroleum products, LNG and processed gas. 

• Future outlook: The focus will continue to be on protecting revenue together with cost optimisation to mitigate the negative impact on its profitability and liquidity. 2020 performance is expected to be severely affected by the low oil price and weak demand environment.

• COVID-19 response: Citing that "safety of our people remains our top priority," the statement added that PETRONAS' business operating units are working closely with the National Security Council of Malaysia and the relevant authorities, particularly for plant and on-site workforce to establish stricter HSSE standards and standard operating procedures whilst ensuring minimal disruption to business and operations.

• Employees' contribution to front-liners: As at 30 June 2020, the Group’s total contribution towards mitigating the spread of COVID-19, including extending assistance to healthcare front-liners, stands at just below RM40 mn, including contribution from PETRONAS’ employees amounting to RM6.4 mn.

Photo / 123RF

Human Resources Online is on Telegram! Follow us @humanresourcesonline or click here for all the latest weekly HR and manpower news from around the region.