Malaysia’s state energy firm Petronas said on Tuesday that higher gas and oil prices had boosted second quarter profits, meaning it will double its government dividend this year.
Profits totalled $5.14 billion for the April-June period, the gas giant said, climbing 140% from $2.14 billion a year earlier. Revenue was also boosted 63% to $20.83 billion.
Petronas will pay the Malaysian government, its sole shareholder, a total of 50 billion ringgit ($11.16 billion) in a dividend this year, president and group CEO Tengku Muhammad Taufik said at a media briefing.
The company was earlier expected to pay 25 billion ringgit – the same as last year – but the government made a request for a higher amount, he said.
Energy Economy
Petronas is a significant source of revenue for the Malaysian government, which is grappling with higher expenses this year for subsidies and cash aid payments to offset inflation.
The government has said it expects to spend a record $18 billion in subsidies for fuel and cooking oil amid surging commodity prices.
Tengku Muhammad Taufik said oil prices would start to correct gradually next year as supply normalises.
- Reuters, with additional editing from Alfie Habershon
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