KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has emphasised that all its dividend payments, including the one-off special dividend and any future dividends, will take into account its ability to service debts.
In a statement released today, the petroleum company said the dividend payment would also include its ability to fund ongoing operations and invest in future growth.
This statement was made in reference to the change of Moody’s ratings outlook from stable to negative.
The rating agency stated that the outlook change was due to the financial profile of Petronas would be at risk of deteriorating if dividend payments remain high in the future.
Petronas refers to the announcement by S&P Global Ratings and Moody’s Investors Service affirming the company's credit ratings of A- and A1 respectively.
This was subsequent to the announcement of the RM30 billion one-off special dividend payment in the 2019 Budget.
The credit ratings affirmation reflects Petronas’ solid financial position that remains robust supported by strong fundamentals, sizeable net cash and ample liquidity position.
This would be 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.
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