PETALING JAYA: Petroliam Nasional Bhd (Petronas) has reassured the investing public of its commitment towards ensuring that any dividends paid or to be paid in future will not affect its cash flow or its prospects, after Moody’s rating agency cited a negative outlook on the oil company due to more hefty dividend payouts.
“Petronas would like to clearly emphasise that all its dividend payments, including the one-off special dividend and any future dividends, will take into account its ability to service debts, fund its ongoing operations and invest in future growth,” it said in a statement issued today.
Moody’s and S&P had premised their outlook on the supposition that Petronas may be tapped for more dividends in the future to support government finances.
The state-owned oil company said the credit ratings affirmation by both ratings agencies reflect its solid financial position that remains robust supported by strong fundamentals, sizeable net cash and ample liquidity position, driven by the transformation efforts in the past few years in the areas of operational efficiency, cost reduction and portfolio optimisation, and supported by improved oil prices.
It also noted the change of Moody’s ratings outlook from stable to negative. In this regard, it was stated that the outlook change was due to Moody’s view that the financial profile of Petronas would be at risk of deteriorating if dividend payments remain high in the future.
Earlier, on Saturday, Petronas said it is assessing the impact of a proposal by the Sarawak state government to impose sales tax of 5% on petroleum products in 2019.
“Petronas will continue to monitor developments on this matter and engage with both the Federal and Sarawak state governments,” it said in a statement.
