Malaysia's Petronas to pay RM34b government dividend in 2020: minister

[KUALA LUMPUR] Malaysian state energy firm Petronas will pay the government a dividend of 34 billion ringgit (S$11.15 billion) in 2020, despite posting losses in the second quarter, the country's economic minister said on Monday.

The company, which paid 54 billion ringgit in dividends in 2019, originally committed to pay 24 billion ringgit this year, and said that any additional funding would depend on its affordability.

The state-owned firm posted a loss of 21 billion ringgit in the April-June period, its first quarterly loss in nearly five years, amid weak demand and lower oil prices due to the coronavirus pandemic.

Mr Mustapa's comments were contained in a written parliamentary reply, as the government prepares to announce its budget for 2021 on Friday.

The government is expected to see a reduction of six billion ringgit in revenue this year due to lower oil prices, he added.

Petronas did not immediately respond to a request for comment.

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REUTERS