Wednesday , October 20 2021

We will ensure that payments do not affect cash flow, prospects


PETALIING JAYA: Petroliam Nasional Bhd (Petronas) has reassured the investing public for its commitment to ensure that any dividends to be paid or paid in the future will not affect its cash flows or prospects since Moody & 39; s reported negative oil outlook due to higher dividend payments.

"Petronas would like to make it clear that all dividend payments, including the one-off special dividend and any future dividends, will take into account its ability to service debts, finance its ongoing business, and invest in future growth." a statement issued today.

Moody's and S & P had anticipated their view that Petronas could be used for more dividends in the future to support public finances.

The state oil company said credit rating confirmation by the two rating agencies reflects its strong economic position, which remains robust and supported by strong fundamentals, significantly net cash and abundant liquidity due to the transformation efforts in recent years operating efficiency, cost reduction and portfolio optimization, and supported by improved oil prices.

He also noted the change in the Moody's rating outlook from stable to negative. In this respect, it was reported that the change in the prospects was due to Moody's view that Petronas's financial profile would be in danger of deteriorating if dividend payments remain high in the future.

Earlier on Saturday, Petronas said he was assessing the impact of a proposal by the Sarawak state government to impose a tax on oil sales of 5% in 2019.
"Petronas will continue to follow developments on this issue and work with both the governments of the federal state and the Sarawak state," he said in a statement.

Source link