UOB Kay Hian Research said even with the US$6bil bonds raised by Petronas last month and its strong cash position of RM144bil, it might not fully protect the group from a perfect storm that will cause more free cash flow downside and an upside risk on dividends.
PETALING JAYA: Petroliam Nasional Bhd’s plan to slash its budget could see it saving some RM17bil, but this may be insufficient for the state-owned oil and gas (O&G) giant to weather the challenging economic environment, according to a local research house.
UOB Kay Hian Malaysia Research said even with the US$6bil bonds raised by Petronas last month and its strong cash position of RM144bil, it might not fully protect the group from a perfect storm that will cause more free cash flow downside and an upside risk on dividends.
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