Pua Petronas Can Afford One Off Rm30b Special Dividend

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Petronas can afford the RM30 billion special dividend the government is asking for next year, assured Tony Pua, the finance minister's political secretary
"The reason why they are able to give us the RM30 billion in the first place is because there are more than sufficient cash reserves
"They wouldn't give it to us if they didn't have enough," Pua told reporters after a business forum in Kuala Lumpur today
The Damansara MP said this when asked to comment on how the special dividend would affect Petronas financially if oil prices were to crash again
The RM30 billion special dividend is part of RM54 billion that Putrajaya is asking from Petronas next year
Ratings agency Moody's yesterday expressed concern that the government would continue to ask for high dividends from the national oil company and that this could negatively impact Petronas should oil prices fall
Earlier, during the forum entitled "Doing Business in Malaysia", Pua said that Moody's revision was unfortunate
However, he assured that contrary to Moody's concerns, the RM30 billion special dividend would indeed be a one-off affair
"We are doing a one-off to pay (the RM37 billion in unpaid) refunds for the goods and services tax and income tax," he said, referring to the arrears allegedly left behind by the previous BN government
Pua also cited a separate review of Petronas by S&P Global Ratings which was more positive.
S&P had said Petronas could afford periodic cash calls from the government as it had solid finances. The agency also said it expected oil prices to remain high. - Mkini

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