BIG PAYDAY
PETROLIAM Nasional Bhd posted a net profit of RM26.6 billion in the first half, an increase of 54 per cent year-on-year, helped by improved global crude oil prices. It will pay a higher dividend of RM24 billion to the government this year.
PETROLIAM Nasional Bhd (Petronas) posted a net profit of RM26.6 billion in the first half of the year, an increase of 54 per cent compared with the same period last year, but remains modest about its full-year prospects.
President and chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin said the national oil company would pay the government a higher dividend payment of RM24 billion instead of the RM19 billion promised earlier.
He said this was made possible by the higher global crude oil price, which was expected to reach US$73 (RM300) a barrel at the end of the year.
“For this year, the dividend payout will be RM24 billion, about 50 per cent increase from last year,” he said at a briefing on Petronas’ half-year results, here, yesterday.
Petronas, which is known to be conservative on its outlook, said it expected its full-year performance to be satisfactory.
The stronger interim performance was on the back of higher revenue, lower net impairment on assets and well costs as well as other expenses.
The increase was, however, partially offset by higher net product and production costs coupled with higher tax expenses.
He said the better performance was driven by continued focus on operational excellence and execution of its business improvement initiatives, supported by increased commodity prices and improved margins.
“We registered a five per cent increase in cash flows from operating activities to RM41.7 billion compared with RM39.8 billion in the corresponding period last year.”
He added that capital investments for the first six months of this year stood at RM19.8 billion, which were mainly spent on the Pengerang Integrated Complex (PIC) project in Johor.
“Our PIC is on track at 92 per cent overall progress as of June. We expect to see completion of the refinery and cracker construction by the first quarter of next year as planned,” he said.
Petronas recorded a RM117.2 billion revenue in the first six months, up eight per cent from RM107.1 billion previously.
Its total assets increased to RM610.7 billion from RM599.8 billion as at December 31 last year, primarily due to higher cash and fund investments.
Wan Zulkiflee also confirmed that former prime minister Tun Abdullah Ahmad Badawi would cease to be its adviser and that there were no discussions over the government reducing its stake in Petronas.