KUALA LUMPUR (July 9): Petroliam Nasional Bhd (Petronas)'s former president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin said the company will continue to monitor the development of external events, strengthen the group's resilience as well as future-proof the organisation to preserve its long-term sustainability as the dual impact of a Covid-19-driven demand slowdown and oversupply in the oil market continues to unfold.

Wan Zulkiflee said in Petronas’ 2019 annual report that the Malaysian national oil company’s focus will be on the elements that are within its control which include strengthening its financial position, driving further efficiencies and cost-optimisation efforts across the group.

"On the back of strong fundamentals and a healthy cash position, Petronas aims to sustain the momentum in the execution of our strategies with the objective to future-proof the company. Above all, Petronas remains committed in delivering long-term value to our stakeholders by fulfilling the amanah (trust) and our statement of purpose as a progressive energy and solutions partner enriching lives for a sustainable future.

"Greater uncertainty is shaping the energy industry in 2020 as the dual impact of a Covid-19-driven demand slowdown and oversupply in the oil market continues to unfold. As we release this report, the coronavirus pandemic continues to impact global economic activities with countries around the world imposing national quarantines and lockdowns, causing a sharp fall in global demand.

"Further strains in the global economy emerged in early March 2020 following an oil price crash triggered by the collapse of the OPEC+. Dwindling storage capacities have also put further pressure on oil prices, with the historical plunge of WTI prices into negative territory in late April 2020, another indication of market dislocation. While we have recently seen some positive developments following the concerted efforts taken by the OPEC+ towards stabilising oil prices, the energy industry continues to be hard-hit by a combination of demand and supply shocks,”  he said.

In this period of uncertainty, Petronas has taken early measures to safeguard the well-being of its people through the implementation of several proactive steps to manage the risk of exposure and reduce the risk of transmission of the virus, according to Wan Zulkiflee.

"In terms of our businesses, we are ensuring that our operations continue to run safely and efficiently across the value chain,” he said.