Petronas stresses strong financial profile after outlook lowered


Petronas vice-president of LNG marketing and trading Ahmad Adly Alias said Petronas remained committed to delivering reliable supply of LNG through its integrated operations that allow for both long-term and short-term solutions for its customers

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) emphasises its declaration of dividends and also future dividends to the government will not impact its on-going operations due to its strong financial profile.

The national oil company said on Sunday that “all its dividend payments, including the one-off special dividend and any future dividends, will take into account its ability to service debts, fund its ongoing operations and invest in future growth”.

It issued the statement after Moody’s Investors Service changed its ratings outlook on Petronas from stable to negative. 

The rating agency had stated that the outlook change was due to Moody’s view that the financial profile of Petronas would be at risk of deteriorating if dividend payments remain high in the future.
 
To recap, S&P Global Ratings and Moody’s Investors Service had affirmed Petronas’ credit ratings of A- and A1 respectively, subsequent to the announcement of the RM30bil one-off special dividend payment in the 2019 Budget.

S&P and Moody’s credit ratings affirmation reflected Petronas’ solid financial position that remains robust supported by strong fundamentals, sizeable net cash and ample liquidity position, driven by the transformation efforts in the past few years in the areas of operational efficiency, cost reduction and portfolio optimisation, and supported by improved oil prices. 
 
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

dividends , Budget 2019 , S&P , Moody's , ratings , outlook

   

Next In Business News

Macau casino giants win licence renewals, Malaysia's Genting loses bid
Oil prices fall 2% as Chinese demand worries linger
China investors identify trigger points to buy
More than meets the eye in courier industry
Energy security is global priority in 2023
Asia’s richest man makes US$5bil bet to silence debt-obsessed critics
The crypto bubble of the worst kind
ESG in real estate gains traction
Poll: UK house price rally to end next year but no big crash seen
The rise and fall of FTX

Others Also Read