Despite profit drop, Petronas to maintain RM30bil payout to govt

National oil company Petroliam Nasional Bhd (Petronas) will maintain its RM30bil dividend payment to the federal government this year, despite posting a 23.2% drop in net profit of RM40.3bil, on the back a lower revenue of RM216.4bil for the financial year ended March 31, 2010.

The payment accounts for about 74% of Petronas’ net income.

"Dividend payments have emerged as the major component of the group's payments to the federal government, following our steady expansion locally and abroad," Petronas president and CEO Datuk Shamsul Azhar Abbas said at a press conference here Thursday.

Petronas is crucial to Malaysia's economy as it provides almost half of the Government's budget revenue through dividends and taxes.

To date, Petronas has returned RM529bil to both the federal and state governments. In addition, it also bore a cumulative gas subsidy of RM116bil.

For the year under review, Petronas' grand total payments to federal and state governments was down at RM57.6bil from RM74bil a year earlier as a result of lower taxes of RM10.7bil, given lower profits.

Petronas' gas subsidy was also lower at RM18.9bil, compared with RM19.5bil a year earlier.

"The ability to uphold our obligations to return value to shareholders continues to demonstrate the enduring strength of the group's business model as a national oil company that operates commercially and independently," Shamsul said.

By HANIM ADNAN 

thestar.com.my