KUALA LUMPUR (March 8): Petroliam Nasional Bhd (Petronas) will deliver RM54 billion in dividend to the government, including a special dividend of RM30 billion for the financial year ended Dec 31, 2018, said president and group chief executive officer, Tan Sri Wan Zulkiflee Wan Ariffin today.

Speaking to the media here after delivering the state oil firm's financial results, he said the special dividends would be paid in tranches throughout 2019, having started in January. 

In the Budget 2019 announcement, the government expected to receive a special dividend of RM30 billion from Petronas, bringing the federal government’s revenue to RM261.8 billion or 17.1 per cent of gross domestic product (GDP) for 2019. 

The special dividend would be sourced from the accumulated retained earnings of Petronas and be utilised to fully settle the outstanding tax refunds estimated at RM37 billion comprising RM18 billion in income tax and RM19 billion of Goods and Services Tax. 

In the financial year ended Dec 31, 2018 (FY18), Petronas’ net profit rose 22 per cent to RM55.3 billion, compared to RM45.5 billion previously, on the back of higher revenue and supported by a net write-back of impairment of assets.

The increase was partially offset by higher net product and production costs, depreciation and amortisation as well as tax expenses. 

Revenue for FY18  rose by 12 per cent to RM251 billion compared to RM223.6 billion year-on-year, mainly due to higher average realised prices for all key products, but partially offset by the effect of the ringgit’s strengthening against the US dollar, coupled with lower sales volume, mainly for liquefied natural gas (LNG). 

Cash flows from operating activities improved to RM86.3  billion, an increase of 14 per cent from RM75.7 billion  in 2017.