PETRONAS to pay RM40bil dividend to government in 2023


A sign for a Petroliam Nasional Bhd (Petronas) gas station stands near the Petronas KLCC Twin Towers in Kuala Lumpur, Malaysia. - Goh Seng Chong/Bloomberg

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) will pay a total of RM40 billion in dividends to the government this year, which is RM5 billion more than the initial RM35 billion announced earlier.

Executive vice-president and group chief financial officer Liza Mustapha said the dividend payment was based on Petronas’ affordability.

"It is a longer term projection in discussions we have with our shareholders. We take the long view (in our) discussions, not just for the next 12 months but let's say, further to 2030.

"(On the question of) whether what we spend on new business will affect dividend, actually I would like to put it the other way around, we orchestrate a top-down (approach) in capital allocation.

"We will put aside 20 per cent of our capital expenditure (capex) on an average basis for new business and investment to source new energy," she told reporters at the announcement of Petronas’ first half of 2023 financial performance.

Meanwhile, Petronas president/group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz said the national oil company has to ensure that the security of energy supply using hydrocarbons continues.

"Energy demand will grow. The new (energy) system is not going to be ready within one or two years...we need to make sure that the (current) demand is serviced," he said, adding that the group needs to set aside "buffers” to continue its business as usual. - Bernama

Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Business News

Financial instruments to form integral part of SST's stake in U Mobile
Chinese authorities are considering a weaker yuan as Trump trade risks loom, sources say
Oil up on China's monetary policy shift
Miti to set up star rating for industrial parks next year - Liew
Stocks settle in for nervous wait on US CPI
Malaysia approves RM254.7bil of investments in 9M24 - Mida
Wholesale and retail trade rises 5.5% to hit RM150bil sales in Oct 2024
Singapore economists see growth of 3.6% in 2024, monetary policy unchanged in January
FBM KLCI slips towards 1,600 as US inflation jitters spill over
Axiata, Sinar Mas ink deal on merger of Indonesian units

Others Also Read