PETALING JAYA: A larger dividend to the government on the back of elevated oil prices will limit Petroliam Nasional Bhd’s (Petronas) spending on upstream activities and gas infrastructure moving forward, a research house said.
BIMB Securities said the state-owned oil corporation’s capital allocation could come under pressure if the government seeks larger dividend contributions from Petronas to offset higher fuel subsidy costs.
In its Budget 2027 preview note today, the research house said a higher dividend payout could raise questions over Petronas’ longer-term capital allocation including spending on upstream activities, gas infrastructure and energy-transition initiatives.
