Petronas to pay dividend despite cash shortfall
KINIBIZ Petronas will still pay RM26 billion in dividends to the federal government despite its weakening cash flow, said chief executive officer (CEO) Wan Zulkiflee Wan Ariffin at a press conference today.
“We are still committed to paying the RM26 billion,” said Wan Zulkiflee during today’s presentation of Petronas financial results for the second quarter of 2015 (2Q15).
Wan Zulkiflee said that Petronas does not expect its cash flow from operations this year to meet its capital expenditure and dividend commitments, so the company will have to draw on its cash reserves and persevere on austerity measures to cover any shortfall.
The CEO explained that prudent cash management in the past had provided sufficient financial reserves for the company, but it will not have the luxury now that oil prices have plunged.
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