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KUALA TERENGGANU: The government is committed to ensuring that Petronas is profitable again, but world oil prices will be key, Finance Minister Tengku Zafrul Tengku Abdul Aziz said today.
The loss announced by Petronas two days ago was due to falling oil prices in the second quarter, but they have since risen, he said.
“If I’m not mistaken, in March and April the price of oil (Brent crude) fell to $ 20 a barrel. At least now there is an increase (in oil prices) in the global economy.
“The projected oil price for this year is around $ 40 a barrel, so the projection is still within our range,” he told reporters here today.
Tengku Zafrul was commenting on Petronas’ announcement of its RM21 billion net loss in the second quarter ended June 30, due to huge asset deteriorations and weaker oil prices, versus a RM14.7 billion profit. in the same quarter of last year.
It was the first quarter that the national oil and gas company posted losses since the fourth quarter of its fiscal year 2015.
Tengku Zafrul, on a two-day official visit to Terengganu since yesterday, paid a courtesy visit to Terengganu Menteri Besar Ahmad Samsuri Mokhtar.
The minister said that although Petronas did not make a profit, Terengganu will continue to receive its share of the oil royalties in September as decided by the government, but the amount has yet to be refined due to the current situation.
However, he said that the loss suffered by Petronas would not affect the development of the country, as the government has undertaken various initiatives to stabilize the economy and generate income.
“We will continue spending, especially for development… that’s why our fiscal deficit will increase. The country’s deficit is expected to increase, with the implementation of Penjana (the national economic recovery plan), to 5.8-6% from 3.4% last year ”.
He recalled that the government does not depend only on dividends from Petronas, since these represent less than 20% of income.
According to Tengku Zafrul, people have received benefits worth RM767 million under the Prihatin Rakyat (Prihatin) economic stimulus package, while their entrepreneurs received benefits worth RM257 million in Penjana.
“In terms of strengthening the state’s economy, the federal government has channeled RM3.8 million worth of assistance through small projects.
“We have also discussed various measures that can be taken with the federal government to further boost the state’s economy, especially to offset Covid-19 (economic impact),” he added.
While his visit to Terengganu was primarily to meet with representatives of tourism and other sectors affected by the pandemic, Tengku Zafrul said he also wanted to ensure that the federal government’s 2021 budget measures reach target groups transparently and quickly.
“For example, Terengganu is rich in natural resources, cultural heritage and natural environment. It has great potential for further development. This potential will be explored together through discussions with stakeholders, ”he said.
