Petronas may cut capex for new projects next year

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KUALA LUMPUR: Petronas is looking at cutting 15-20 per cent of its RM60 billion capital expenditure (capex) for new projects next year, given the current backdrop of low oil prices.

President and chief executive officer Tan Sri Shamsul Azhar Abbas said the group would channel most of its income to capex, which required it to be disciplined in capital management, including a strict dividend policy.

“If global oil prices remained between US$70 and US$75 per barrel next year, we plan to reduce dividend and tax to the government to RM17 billion, each, while oil and gas royalty reduced to RM9 billion.

“If we are expected to maintain the current level of dividend or higher, it will have a significant impact on our growth,” he told a media briefing on the group’s third quarter financial performance here yesterday.

However, the group will maintain its dividend contribution to the government of RM29 billion, tax of RM26 billion and royalty of RM13 billion for 2014. — Bernama