Petronas is forecast to contribute to government coffers as much as RM59 billion this year, a cabinet minister said in a statement to Parliament published today.

Petronas contributions are a significant source of revenue for the federal government, which is expecting to spend a record RM77.3 billion in subsidies and cash aid this year to help the public tackle inflation.

In 2021, the company contributed RM48.2 billion in dividends, taxes and cash payments to the government, its sole shareholder.

The contribution from Petronas in 2022 is estimated at around RM55 to RM59 billion, said Minister in the Prime Minister's Department (Economy) Mustapa Mohamed. That includes dividends, taxes, petroleum cash payments, and export duties.

The estimates were based on Petronas' projections with the assumption that Brent crude oil prices remain at US$100.03 a barrel and that production remains uninterrupted throughout the year, he said.

Petronas projects a total profit after tax of around RM75-80 billion this year, Mustapa added.

Brent crude traded at US$104.89 a barrel today.

- Reuters