Petronas SWOT analysis

Petronas SWOT analysis – SWOT analysis of Petronas: Petronas also known as Petroleum Nasional Berhad as it is more commonly referred to is an official state-owned oil and gas company operating out of Malaysia. Because it is a government-owned company, Petronas has been given full control over all-natural gas and oil resources in the region. It is also accountable for its long-term sustainability and accessibility to the next generation.

With revenues of more than 42 billion dollars and assets that total over 143 billion USD, Petronas has been one of the most prominent players in the gas and oil industry not only in Malaysia but all over the world. The company has more than 216 fields of oil and gas on its own and owns around 55 supply points around the world.

The company also provides LNG liquefies to several of the largest cities, including China, Korea as well as Japan. It is also the leading company of LNG throughout the world and is home to greater than 10,000 LNG cargoes. With over 2000 retail stores spread across more than 70 different countries. Petronas along with gas and oil also sells Petrochemical and lubricants merchandise through its representative as well as marketing office.

Petronas fun facts: Back in July 2008, crude oil reached a historic peak of US$145 per barrel, which would of course move many petroleum companies to the top of Forbes list, making Petronas the most profitable company in ASIA that year.

About Petronas – SWOT analysis of Petronas

Petronas SWOT analysis

Company: Petroleum Nasional Berhad

CEO: Tengku Muhammad Taufik

Founder: Tengku Razaleigh Hamzah

Year founded: 17 August 1974

Headquarters: Tower 1, Petronas Towers, Kuala Lumpur City Centre, 50088 Kuala Lumpur, Malaysia

Annual Revenue: RM248 billion

Profit | Net income: RM48 billion

Number of employees: 47,669

Products & Services: Petrol | Diesel | Jet fuel | Lubricants | Cooking gas | Pharmaceuticals | Propane and More.

Website: www.petronas.com

Petronas Competitors

Competitors: ONGC | IndianOil | China Resources Gas Group | MMC Group | PetroChina | Petrobras & Lukoil | BP | IOCL

SWOT analysis of PetronasPetronas SWOT analysis

Petronas SWOT analysis

SWOT Analysis Of Petronas is brand-based. SWOT Analysis of Petronas evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing Petronas’s SWOT Analysis. Below is the detailed SWOT Analysis of Petronas.

Let’s talk about Petronas’s SWOT assessment.

Strengths of PetronasPetronas SWOT analysis

  • Multi-faceted interests: Petronas is a large collection of diverse business interests that span the gas and oil domains. Their main interests include exploration of and oil production as well as natural refineries for oil; the marketing, and distribution of petroleum lubricants and petrochemicals; trading the processing of gas and its liquefaction gas transmission pipeline operations marketing of natural gas liquefied and petrochemicals; logistics automobile and real property.
  • Top-quality facilities: Petronas currently owns three refineries with capacities of 570 kbpd, 11 blend plants with 615, 000 mtpa; 18 petrochemical manufacturing plants, and two complexes that are fully integrated totaling 10.8 million millimetric tons per year. The company also has an infrastructure that handles utilities and gas that also including natural gas treatment units, transmission, and regasification.
  • State ownership: The company is controlled by Malaysia’s government. Malaysia has been given the task of managing and controlling the oil demands of the nation. In addition, it is responsible for ensuring that business can be sustained and that resources are sufficient for the current generation as well as the following.
  • The future orientation: Petronas have ensured that they have the infrastructure not only to meet the energy needs of the nation today but also for the future. They own the offshore oil platforms are 381. They also are committed to numerous social issues, including the empowerment of youth, empowerment as well as community well-being development, and growth.
  • Strong customer relations: Petronas is a company that has a strong relationship with its clients. One of the steps which the business has made is to understand the requirements of a client who is dependent on gas and oil and to develop products that meet the needs of those customers.

Weaknesses of PetronasSWOT Analysis Of Petronas

  • Concentration too high in the oil and gas industry: With a lot of regulations governing the oil and gas industry, and additional regulations from various governments, many businesses within the industry are converting into non-oil sectors. Yet, Petronas has the majority of its business interests in the oil and gas sector, which is a risky proposition in the future.
  • Costs are high: The company has made major investments in two key initiatives the RM60bil refinery, as well as the Petrochemicals Integrated Development (Rapid) project in Pengerang, Johor, and the 36 billion dollars (RM137bil) Petroleumnas, led Pacific Northwest LNG project in Canada. The investment was made in the middle of the oil crisis and this timing error has proven to be costly for the company.
  • Ethics Questions: Petronas has been part of several controversies, including taking unfair benefits of state assistance and working conditions that are not ideal for its employees, as well as some issues like oil spills and so on.

Opportunities of Petronas – Petronas SWOT analysis

  • Alternative alternatives: Petronas has made use of its expertise in research to expand into previously unexplored areas like geo imaging, acoustic sensing, 3D VSP, etc. They also have been involved in several initiatives on alternative energy options such as wind power and tidal power.
  • Partnership in racing: Petronas was able to enter into an alliance in conjunction with the Mercedes AMG PETRONAS Formula One team which has provided them with a wealth of expertise in race technology. One of the most significant outcomes of this partnership is the Fluid technological solutions.

Threats of Petronas – SWOT analysis of Petronas

  • Competitors: The main competitors of Petronas are British Petroleum, Shell, and Chevron.

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Overview Template of Petronas SWOT analysis

Petronas SWOT analysis

Conclusion

According to these laws and regulations, in many regions, companies must file and get approval for an environmental evaluation report prior to the commencement of exploration, production, refining, and chemical projects. The companies must also restrict the type, quantities, and concentration of various substances that can be released into the environment in connection with drilling and production activities. Further, environmental laws and regulations also limit or prohibit drilling activities within protected areas and certain other areas; and impose penalties for pollution resulting from oil, natural gas, and petrochemical operations, including criminal and civil liabilities for serious pollution. These laws and regulations also restrict air emissions and discharges to surface and subsurface water resulting from the operation of natural gas processing plants, chemical plants, refineries, pipeline systems, and other facilities that the company owns. Petronas is also subject to laws and regulations relating to the generation, handling, storage, transportation, disposal, and treatment of solid waste materials. Due to the increasing importance given to environmental safety, it is possible for the environmental laws and regulations to become increasingly strict and rigid. In such a scenario, the company will have to incur heavy expenses in order to adhere to the industry norms in all the regions where it has operations.

This is the SWOT analysis of Petronas. Please let us know if you have additional suggestions to add.


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