DR M: PETRONAS CAN AFFORD IT
It used to give govt RM80b when oil was almost double the current price
PETRONAS wouldn’t be giving the RM30 billion special dividend to the government next year if it could not afford to do so, said Prime Minister Tun Dr Mahathir Mohamad.
“RM30 billion is nothing to them. They used to give the government RM80 billion at a time when the oil price was US$120 per barrel. (They are giving) RM30 billion because the price of oil now is US$70 per barrel.”
He said this when asked to comment on concerns raised by Moody’s Investors Service that the financial position of Petronas might deteriorate if the government continued to ask the national oil company to keep dividend payments high.
The ratings agency has since downgraded its outlook on Petronas from “stable” to “negative”.
This follows the announcement by the government in the 2019 Budget that Petronas will pay a one-off special dividend of RM30 billion to the government next year, in addition to the regular annual dividend of RM24 billion.
The company will also pay RM26 billion in dividends for this year, versus the RM16 billion it paid in 2016 and last year.
Dr Mahathir said rating agencies should realise that the country was not dependent on oil and 80 per cent of its exports consisted of manufactured goods.
“We are not dependent on oil. Yes, sometimes when the price of oil goes up, it gives us more money... that’s all,” he said.
He said this on the sidelines of the 33rd Asean Summit and Related Meetings here.
Dr Mahathir was expected to attend a gala dinner hosted by Singapore Prime Minister Lee Hsien Loong.