Petronas, Malaysia's state-owned energy firm, is set to raise its dividend contribution to the government by 19% in 2027, driven by rising oil prices and increased profits. The Ministry of Finance projects that petroleum-related revenue will reach $15 billion next year, a significant boost from the previous year. This increase comes as global crude oil prices remain stable, allowing Malaysia to benefit from higher dividends from Petronas.
The dividend for 2027 is expected to reach $7.8 billion, up from $6.6 billion in 2026. However, 2026 saw a decline in petroleum-related revenue to 15.1% of total revenue, due to lower dividends from Petronas despite higher oil price forecasts. Last year, Petronas' contribution to the budget was expected to drop by 38%, the lowest since 2017, due to falling oil prices.
Despite the challenges in 2026, Petronas' performance improved significantly. Its revenues rose by 15% in the first half of 2026, driven by higher domestic production, LNG exports, and increased energy prices. Core earnings and profit after tax also saw a 4% year-over-year increase. The company has also been expanding its operations through new ventures like Searah, a joint upstream company with Eni, and diversifying its LNG supply arrangements.
These developments highlight Petronas' strategic efforts to strengthen its position in the global energy market. As oil prices continue to fluctuate, the company's ability to adapt and increase dividends will be crucial for Malaysia's economic stability and government revenue.