Higher Petronas Dividend Could Weigh On Upstream Investments, Analyst Warns

Petroliam Nasional Bhd's (Petronas) higher dividend commitment to the government under Budget 2027 could constrain funding for upstream oil and gas investments, potentially affecting local service providers, according to Hong Leong Investment Bank (HLIB) Research.

Higher Petronas Dividend Could Weigh On Upstream Investments, Analyst Warns

Petroliam Nasional Bhd’s (Petronas) higher dividend commitment to the government under Budget 2027 could constrain funding for upstream oil and gas investments, potentially affecting local service providers, according to Hong Leong Investment Bank (HLIB) Research.

The research house said Petronas’ dividend contribution is projected to increase by 18.5% to RM32 billion in 2027 from RM27 billion expected in 2026, significantly higher than the original RM20 billion estimated under Budget 2026.

 

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