Government will not revise Budget 2016 despite Petronas’ lower dividend, says deputy finance minister

Petronas will pay RM16 billion to the government next year as compared to the RM26 billion this year. — AFP pic
Petronas will pay RM16 billion to the government next year as compared to the RM26 billion this year. — AFP pic

KUALA LUMPUR, Nov 13 — The government will not revise the newly-tabled Budget 2016 despite Petroliam Nasional Bhd (Petronas) reducing its dividend payout.

Deputy Finance Minister, Datuk Chua Tee Yong, said the Budget had taken into account the declining oil prices.

“Before we (the government) drafted the budget, we consulted the relevant parties and as such the dividend payout was estimated around RM16 billion,” he told reporters on the sidelines of the CrowdPlus.asia launch, ASEAN’s first equity crowdfunding, here today.

In earlier reports, Petronas President/Group Chief Executive Officer, Datuk Wan Zulkiflee Wan Ariffin, said the lower dividend was due to the low oil price environment and anticipation of a prolonged situation.

Petronas will pay RM16 billion to the government next year as compared to the RM26 billion this year.

Petronas’ pre-tax profit for the third quarter ended September 30, 2015 fell to RM3.8 billion from RM22.7 billion in the same quarter last year.

Revenue for the quarter declined 25 per cent to RM60.06 billion from RM80.37 billion previously due to the continued low oil price as global supply continued to outstrip demand.

Meanwhile, the Brent price averaged at US$50 (RM218.66) per barrel in the quarter compared with US$101 per barrel in the same quarter last year and US$62 per barrel in the second quarter of this year.— Bernama