KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) says its board of directors has approved a RM50 billion dfividend payment to the government for 2022, in light of the unprecedented challenge and prolonged market volatility.
Petronas president and group chief executive officer Tengku Datuk Muhammad Taufik said the national oil company had made the scheduled RM25 billion dividend payments to the government.
"We were also able to distribute an additional dividend of RM25 billion, meaning the total RM50 billion last year.
"After having carefully and rigorously assessed the group's affordability, we continue to fund its operations service," Tengku Muhammad Taufik said at the announcement of Petronas' financial performance for FY2022 here today.
He said Petronas had also continued to uphold its commitment to the National Trust Fund, with a contribution of RM500 million for 2022.
"As I report these results today, Petronas remains the sole contributor for the National Trust Fund since its establishment in 1980, with a cumulative total paid contribution of RM11 billion. In the same strike, Petronas has never wavered from ensuring the wellbeing of society wherever we operate beyond us providing oil and gas," he added.
On the dividend paymet for this year, Tengku Muhammad Taufik said it had not been determined yet.
"As I told you last time we spoke, from what we have heard it was RM35 billion. Obviously the budget speech has now transpired since we last engaged. Whether the number is RM35 billion or RM40 billion, it will still be subjected to the usual rule," he said.
In addition, Tengku Muhammad Taufik said the group would make dividend payments subject to affordability.
"I will go through the necessary governance. We will have to contend with ongoing operations, servicing our debt and reinvestment needs. But whether the number is RM35 or RM40 billion, the numbers will needs to go through the new considerations of affordability and solvency as usual," he added.
Malaysia's revised 2023 Budget is based on a crude oil price assumption averaging US$80 a barrel this year, down from US$90 a barrel in the original spending bill announced last October.
Hence, the government was expecting Petronas to pay RM40 billion in dividends this year, according to the Ministry of Finance's Updates on Economic & Fiscal Outlook and Revenue Estimates 2023.
This will be RM10 billion off the RM50 billion Petronas paid in 2022, but higher than the original 2023 Budget headline of RM35 billion.