Business

Petronas to pay higher dividend of RM24 billion to government

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Syndicated News
Written by Syndicated News

KUALA LUMPUR — Aug. 30, 2018: Petronas has revised its dividend to the government this year to RM24 billion from the RM19 billion announced in March, backed by improved oil prices and group earnings.

In the first half of 2018, the national oil company recorded RM117.2 billion in revenue, up eight per cent, from the RM108.1 billion recorded in the same period last year.   

“This was driven by the group’s continued focus on driving operational excellence and execution of its business improvement initiative, supported by higher commodity prices and improved margins,” President and Group Chief Executive Officer Tan Sri Wan Zulkiflee Wan Ariffin told a press conference today on the company’s 2018 half year financial results.

In 2017, the dividend Petronas paid was RM16 billion.

Net profit rose 54 per cent to RM26.6 billion from RM17.3 billion in the first half of 2017. Wan Zulkiflee said Petronas expected Brent crude to average just below US$73 per barrel by year’s end.

“However, taking a conservative view in planning our expenditure for 2019, we are expecting Brent crude to stay around US$66 per barrel on an annual average due to fragile supply and demand.”

Commenting on the ongoing tussle with oil and gas activities in Sarawak, Wan Zulkiflee said Petronas was leaving it to the Federal and state governments to discuss the percentage of royalty and would be guided by the outcome of the discussions, of which it was not involved.

“However, for day to day operations we are in active discussion with Petroleum Sarawak Bhd (Petros) on how the working arrangement can be mutually acceptable to all parties.

“The grace period that we have, to sort out these matters with Petros, is until end of next year.

“This is important as we all need to keep Malaysia’s oil and gas industry resilient and as an attractive investment destination for foreign O&G companies,” said Wan Zulkiflee.

On outlook, Wan Zulkiflee said Petronas would maintain its prudent view and continue to pursue more growth opportunities to ensure its ensure long-term sustainability. — Bernama

 

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