KUALA LUMPUR, Nov 11 (Bernama) –  Petronas has emphasised that its dividend payments, including the most recent one-off special dividend and future dividends, take into account the company’s ability to service debts.

In a statement today, it said the dividend payments also took into account the national oil company’s ability to fund ongoing operations and invest in future growth.

Petronas was referring to S&P Global Ratings and Moody’s Investors Service’s affirmation of its A- and A1 credit ratings, respectively, subsequent to its announcement of a RM30 billion one-off special dividend payment in the 2019 Budget.

Petronas said affirmation reflected its solid financial position that remains robust supported by strong fundamentals, sizeable net cash and ample liquidity position driven by the transformation efforts of the past few years in the areas of operational efficiency, cost reduction and portfolio optimisation, supported by improved oil prices.

Petronas also noted the change of Moody’s rating outlook from stable to negative.

It was stated that the outlook change was due to Moody’s view that the financial profile of Petronas would be at risk of deteriorating if dividend payments remained high in the future. – Bernama, November 11, 2018.