Petronas to cut spending

Malaysia

KUALA LUMPUR , February 29, 2016 – Malaysia’s Petronas confirmed spending cuts of as much as USD 4.75 billion for 2016 on Monday. The news follows Q4 2015 results that saw the company post a net loss of USD 704.3 million brought about by low oil prices.

First announced in an internal staff memo in January, Petronas will slash spending by almost USD 12 billion until 2020. Cuts for 2016 will be in the range of USD 3.56 billion-4.75 billion, company president and group CEO Wan Zulkiflee Wan Ariffin said at a press conference.
Saying the next two years would be “challenging” for Petronas, the CEO said the company was committed to paying out a USD 3.8-dividend to the Malaysian government in 2016.

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