PETROLIAM Nasional Bhd (Petronas) plans to pay the government a dividend of RM24 billion for the financial year 2019, said president and group CEO Wan Zulkiflee Wan Ariffin.

“We have not had our annual general meeting (AGM) yet, but I can share that we are planning for RM24 billion (dividend) this year,” he said in announcing the group’s financial results today.

The national oil company’s dividend payout to its shareholder, the government of Malaysia, was RM54 billion for the financial year 2018.

On top of the yearly dividend of RM24 billion, a special dividend payout of RM30 billion was also made, with the money paid out last year.

“Last year (2019) was extraordinary. It was an exception,” Zulkiflee said, adding there would be no special dividend this time round.

On the current political crisis marring the country, Zulkiflee said Petronas would not be sucked in by the turmoil. 

“It is business as usual for Petronas. We are focusing our efforts to address the headwinds that the industry is facing,” he said. 

Petronas’ net profit plunged 71% to RM4.1 billion in the fourth quarter ending December 31, 2019, from RM 14.3 billion a year ago, mainly due to net impairment of assets and lower revenue, which was, however, partially offset by lower tax expenses. 

Revenue for the fourth quarter fell 8% to RM 64 billion from RM69.9 billion in the same period for 2018, due to lower average realised prices for major products.

This was partially offset by the impact of higher sales volume, mainly for petroleum products and crude oil and condensates. 

For the full financial year ending December 31, 2019, Petronas recorded a net profit of RM40.5billion, 27% lower than the RM55.3 billion registered in the previous year.

The decline in net profit is attributable to lower revenue and net impairment of assets amounting to RM7.3 billion. However, these were partially offset by lower tax expenses. 

Revenue, on the other hand, dropped 4% to RM240.3 billion against RM251.0 billion in the preceding year,  mainly due to lower average realised prices for major products. 

The decrease was partially offset by the impact of higher sales volume mainly for petroleum products and LNG coupled with the effects of weakening of the ringgit against the greenback. – February 26, 2020.