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KUALA LUMPUR: Malaysia’s state oil company Petroliam Nasional Berhad (Petronas) said late on Tuesday (November 3) that it had approved an additional dividend of RM10 billion ($ 2.40 billion) to the government for help fight the COVID-19 pandemic.
Earlier this week, the country’s economy minister had said that Petronas would pay the government, its sole shareholder, RM 34 billion in dividends this year.
The company, which suffered its first loss in nearly five years in the second quarter, had initially pledged to pay RM24 billion and said any additional financing would depend on its affordability.
Petronas said it approved the additional dividend, which will be remitted at the end of November, in response to “the unprecedented challenges caused by the COVID-19 pandemic,” adding that it had paid the originally committed amount in full.
“To determine whether this additional dividend was affordable, Petronas’s board of directors first became convinced that the company could continue to comfortably finance its operations, pay its debts and meet its obligations, as well as invest in its future growth,” he said in an email. late electronic. on Tuesday responding to Reuters inquiries.
“Petronas remains steadfast in its efforts to preserve cash and strengthen our financial resilience during this unprecedented time.”
The dividend announcement comes as the government prepares to present its 2021 budget, aimed at cushioning the economic impact of the pandemic, on Friday.
