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Wednesday, August 24, 2016

Reposting : Wanita Melayu Ada Tel*q !!

Bloomberg : Petronas Profits Down 96% Last 3 Months, Serious Effect On Fake Economy

Petronas Posts 96% Profit Drop on Lower Oil Price
to review Canada LNG project after Canadian govt decision
sticks to $30/bbl 2016 price assumption

Petronas said profit dropped 96% last quarter 
oil prices remained sharply lower than a year earlier

Net income fell to RM348m in three months through June
RM9.1b a year ago, company said Monday
Revenue slid 21% RM48.4b

first half of 2016 remained difficult for Petronas
continuous volatility of oil prices

will result in loss of about 1,000 jobs
had 51,000 workers end 2014
focus on non-performers for further reductions
without aiming for a specific target

to lower capex and opex by RM20b in 2016
reduction of RM50b over four years
Petronas may raise debt to cover dividend to govt 

Brent averaged US$47 a barrel in second quarter
US$63 during the same period last year. 

will review LNG development in Canada 
after Canada govt finishes assessment Sept or Oct 
Petronas to revisit cost, schedule, market conditions 
delays in securing regulatory approvals

Canadian govt evaluating RM112b Pacific NorthWest LNG project 
Construction scheduled in 2015
concerns about fish, wildlife and First Nation tribes 

My comments : 

What about Petronas' reserves position? How much cash reserves does Petronas have? Some people say Petronas cash reserves will run out by end 2017.  Without reserves and with Malaysia's name stinking to high hell, can Petronas borrow money overseas?  Dont say I did not warn you.

The layoffs in the Oil and Gas industry exceeds way above the 1000 staff cut at Petronas. Plenty O&G companies have closed down or laid off staff.  The largest group that is affected are bumiputras.  I know O&G people who have quit and gone back to the kampong.   

The question is Petronas still has 50,000 staff. How efficient are they vis a vis the industry?

That LNG investment in Canada has been a disaster. I have been commenting about it for years now - even without any charts or analysts. But most 100% certainly some people have already become very rich, even from that fiasco. 

This is the scariest part :

 Net income fell to RM348m in three months through June
RM9.1b a year ago, company said Monday
Revenue slid 21% RM48.4b

These are very huge drops.  That revenue slide is just in three months. At this pace it could reach RM200 billion drop over 12 months.

The question is the Budget is due again soon. Where is the gomen going to get dividend money from Petronas to fund their corruption and wastage?  How are the GLCs (the fake economy) going to sustain their "money is not an objection" gomen handout dependent business models ? 

The gomen and the GLCs are still dishing out the "feel good" tricks to fool the Malays. That everything is hunky dory fine. This includes the fake 'high income" notions.

Here is the reality folks. In the real world, graduate engineers and architects earn starting salaries of less than RM2000. Even after three years working experience engineers earn about RM3000 or less.  The American multi national giant Intel pays fresh electronic engineers about RM1800 starting salary.  This is the reality in the real economy.

In the fake economy of the GLCs a fresh graduate (non engineering) was paid RM5000 a month !! A fresh graduate ! ! This is a true story ok.  The freshie was given a job travelling to the GLCs overseas offices - which had hired "consultants" who were actually doing the real job. After a while the freshie quit - because there was no real work to do.  Then the freshie joined the same 'consultant'.  

In a GLC owned "seven star" hospital nurses are paid RM2000. Here is the cake folks, nurses in gomen hospitals are now paid even higher, up to RM3000 per month. Much higher than graduate engineers and architects who work in the real private sector. 

Recently an ex Petronas engineer was interviewing for a job in the real private sector..  He was in the RM5000 a month salary range. But he could not answer basic questions about engineering. He complained that he was a 'project manager' and therefore he had forgotten his engineering.  This shows you the difference between the GLC economy and the real economy.

This is the feel good, "high income" economy to dupe the Malays into thinking that everything is hunky dory fine. It is also easier to steal from them when the Malays can be lulled into "feeling good".  This is the 'crooked mamak' business model too !

There are 1.6 million civil servants, over 90% of whom are Malays. I think all the GLCs employ about 500,000 people or more - also mostly Malays. (Petronas alone employs 50,000 people).  So there are over 2.0 million people, mostly Malays who are in the relatively "high income" type jobs, in relation to their economic output.

Here is the question : are their wages proportional to the actual economic output vis a vis the real economy aka the private sector economy?

If yes, then it is very good for the country.
If no, then the disaster has begun already. 

I have some feedback about the GST too which I am not going to share.  Lets see how much GST the gomen collects this year. 

I have said again, again and again the GST is killing the economy.  Economic growth has just been killed off by the GST. How long will it take for the morons to figure this out.

The largest consumer base in this country the Malays are mostly wage earners. Monthly salary earners. Why? Because the NEP has NOT created the BCIC (bumiputra commercial and industrial community). So Melayu semua masih hidup makan gaji dari majikan.

The GST has caused price rises of 15% - 20%  which has taken away the Malays' purchasing power by about the same amount.  Hence business has shrunk all over the country.  The Malays / bumiputras are the largest consumer base in the country. You have killed the goose that lays the golden egg.

Here is proof:

Now the gomen says the GDP growth this year is about 4% only ! !
Before they said 4.5% to 5 %. 
Now they say 4% to 4.5% !!

From 4.5% down to 4.0% is an 11% deceleration.  It is the speed at which the GDP growth is slowing down that is worrying.  It is slowing down at a faster pace.

in the case of Petronas their drop in profits has accelerated by 96% ! !
What shall we do? The solutions are easy. That is the best part. There are easy and painless solutions. And everyone can become rich and happy. at least economically. All Malaysians.

But it all starts with getting rid of that monkey.