KUALA LUMPUR: Credit rating agency Moody’s Ratings expects high energy prices will boost Petroliam Nasional Bhd’s (PETRONAS) upstream earnings.
It said in a statement yesterday that higher petroleum-related revenues provide additional mitigation amid volatility in global oil prices.
“Historically, PETRONAS upstream earnings accounted for the majority of its profits.
“PETRONAS has budgeted RM20bil in dividends for 2026, although future distributions could increase if earnings exceed its expectations,” it said.
Meanwhile, Moody’s said retail prices for certain fuels in Malaysia are controlled to shield consumers from volatility in global oil prices.
It noted that fuel subsidies are funded by the government. Sustained high energy prices could pressure public finances, but the shift toward more targeted fuel subsidies should limit increases in the subsidy bill. — Bernama
