Petronas raises dividend payment to government - Business News | The Star Online

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Petronas raises dividend payment to government


Results announcement: Petronas executive vice-president Datuk Manharlal Ratilal, Wan Zulkiflee, chairman Tan Sri Mohd Sidek Hassan, downstream CEO and group executive vice-president Md Arif Mahmood and executive vice-president and upstream CEO Datuk Mohd Anuar Taib at the briefing. — Bernama

Results announcement: Petronas executive vice-president Datuk Manharlal Ratilal, Wan Zulkiflee, chairman Tan Sri Mohd Sidek Hassan, downstream CEO and group executive vice-president Md Arif Mahmood and executive vice-president and upstream CEO Datuk Mohd Anuar Taib at the briefing. — Bernama

Firm to pay additional RM3bil after posting stellar results in Q2

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas), which posted a stellar performance in the second quarter thanks to higher oil prices, will raise its dividend payout to the government to RM16bil this year.

Group chief executive officer Datuk Wan Zulkiflee Wan Ariffin said Petronas would pay an additional RM3bil dividend to the government on top of its RM13bil dividend commitment for this year.

“We have approved the RM3bil interim dividend to the government that will be given out in stages,” he said at a briefing on Petronas’ mid-year results.

For the second quarter, the national oil company posted more than a four-fold jump in profit after tax of RM7bil from RM1.7bil a year ago.

Revenue for the quarter rose 10% to RM51.6bil from RM46.9bil previously.

For the first half of 2017, the group’s revenue surged 15.4% to RM108.1bil from RM93.7bil previously.

Its net profit for the first half soared 160% to RM17.3bil from RM6.4bil in the same period last year, the group said in a statement.

The increase, however, was partially offset by higher amortisation of oil and gas properties, tax expenses, net foreign exchange losses and costs related to the non-final investment decision for the Pacific NorthWest LNG project in Canada.

Earnings before interest, tax, depreciation and amortisation was at RM45.2bil, a 35% increase compared to RM33.6bil recorded in the same period last year.

The group’s cashflow from operating activities also increased by 55% to RM39.8bil, compared with RM25.6bil previously.

Capital investments totalled RM21.3bil, mainly attributable to the Refinery and Petrochemical Integrated Development project.

Meanwhile, year-to-date crude oil, condensate and natural gas entitlement volume was 1,778 thousand barrels of oil equivalent (BOE) per day while total production volume was 2,342 thousand BOE per day.

Its total assets decreased to RM596.6bil as at June 30 from RM603.4bil as at Dec 31, 2016, primarily impacted by the stronger ringgit against the US dollar.

Gearing ratio decreased to 17.1% as at June 30 from 17.4% as at Dec 31, 2016.

Petronas said that in the first half of 2017, Brent Crude averaged at US$52 a barrel compared to US$42 in the first half of 2016.

“While the price of oil was a significant factor, I also view this as tangible results of Petronas’ transformation measures taken in response to the industry’s downturn,” Wan Zulkiflee said.

On its outlook, Petronas said despite higher oil prices compared to a year ago, the industry remained volatile, tempering the company’s optimism.

“Petronas continues to focus on internal transformation initiatives, effective cash management and cost optimisation.

“The board expects the overall year-end performance of the Petronas group to be fair,” it said.

Corporate News , property

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