Despite recording 53% lower pre-tax profits in its 2015 financial year against the same period in 2014, Petronas will continue its role as title sponsor and key technical partner of the Mercedes-AMG Petronas Formula 1 team.
According to Bernama, the company’s plans to reduce capital expenditure in the wake of low crude oil prices does not include an exit from the sport. “Formula 1 is part of our branding initiatives. Based on last season’s race, we gained higher exposure compared to other oil producers,” said Petronas president and group CEO, Datuk Wan Zulkiflee Wan Ariffin.
The CEO was reflecting on the success of the Mercedes-AMG Petronas F1 team’s successes in the 2015 Formula 1 World Championship season. With Lewis Hamilton and Nico Rosberg at the wheels of its cars, the team won 16 out of 19 races in the season, and was on the podium for all but two races — the Hungarian GP and the Singaporean GP — resulting in maximum exposure for the Petronas brand. The team’s victories in the 2015 season also marked its second successive Drivers’ and World Constructors Championship titles.
“We are still under agreement with the team (Mercedes-AMG Petronas F1) until 2017. We still have a three-year duration. The commitment is still on and there is no change in strategy,” the CEO exclaimed.
Petronas joined the Formula 1 scene in 1995 with the Sauber-Petronas F1 team. In 2009, the company made the switch to back the Mercedes-AMG Petronas F1 team upon its founding.
Looking to sell your car? Sell it with Carro.
good strategy , merc f1 success is synonymous that petronas paintjob on it , n that brand recognition actually very hard to value,thats how u stay long term for your brand and stay relevant…
shell has thousands of petrol stations around the world. so consumer recognition is important to shell.
but petronas on the other hand, has limited exposure to the consumer. apart from limited sales of lubricants, most of their upstream and downstream is B2B. so why do they need to spend so much on branding ?
Retail is only the visible part of the oil business. Many more companies in oil industry are completely unknown to fuel consumers. Being a brand synonymous with success massively boosts recognition. More doors open to winners.
Agreed with you Nabill. Good that Petronas chose a right team.
I still remember Tony Fernandes talked bad about Petronas not being ‘patriotic’ by not pouring money in his so called ‘Lotus’ 1MRT team. Where’s 1MRT now? The cars hardly survived Q1 in each race quali, yet the owner always ‘on cloud 9″.
Good decision Petronas. Stick with the world champion. Obviously, the deal is beyond F1 domain. Being the OEM oil for the brand is one of the examples.
Mr.Petronas,no need waste money.You already lost rm 3 Billion last quarter.Keep the money to save some jobs.Somemore you have to give gomen 16 Biliion Rm annually to rescue our failing “OILED” economy.
Look at bladdy Saudi arabia.In 5 years,if oil price remain at current doldrum levels,it has to be a lapdog of USA,borrowing everywhere cos oil revenues cant sustain their lifestyle.
Look at all the “oil” nations today.all in deep shit.
It is amazing Petronas has not chop a huge chunk of the bloated workforce,yet.Other Oil and gas outfits have already chopped thousands.
Mana bashers semua yang kata sponsor kat F1 bazir duit mereka?
I hope the crude oil price collapse even more and let’s see how PETRONAS can withstand the impact…
hey don’t wish such thing lah! if petronas goes under, then govt has no more cash cow, then more taxes for us the people!
Good job Petronas, pls do cut everything except F1. Makan F1, tidur F1….yeayyy hidup F1…
Keep F1 but cut-off the philharmonic at least for the next few years. Also too many high ranking people whose job is just to pretend they are important and then practice management by fear on the minions who actually do the work. Lots of money can be saved there.
Petronas staffs losing and lost their jobs in Malaysia….and this company is busy with sponsorship.
Ada gaya, but no substance….
Its call branding la brader.. if not why shell still in F1 but sold refinery factory???
because shell has thousands of petrol stations around the world. so consumer recognition is important to shell.
but petronas on the other hand, has limited exposure to the consumer. most of their upstream and downstream is B2B. so why do they need to spend so much on branding ?