KUALA LUMPUR, Feb 27, 2026 — Petroliam Nasional Bhd (Petronas) has announced that it will pay a RM20 billion dividend to the federal government in 2026, guided by what the company describes as an affordable and sustainable payout level after careful evaluation of its financial priorities and operational needs, its president and group chief executive said on Friday.
The decision follows the recent release of the group’s financial results for the financial year ended Dec 31, 2025 (FY25), during which the Petronas board also approved a RM32 billion dividend payment to the government on the back of RM41.6 billion in capital expenditure. The 2026 dividend is lower than the previous year’s payout but reflects the company’s strategy to maintain a balance between government contributions and long-term growth imperatives.
Tan Sri Tengku Muhammad Taufik Tengku Aziz, Petronas’ president and group CEO, said the board’s approval of the RM20 billion dividend was based on a holistic assessment of growth ambitions, reinvestment needs, debt obligations and internal funding requirements. He explained that ensuring “enough proportion for in-shops” and other strategic operations remained a priority.
Looking ahead, Petronas expects its capital expenditure (capex) over the next five years to average between RM45 billion and RM50 billion annually, depending on the phasing of key projects and evolving market conditions. This guidance underscores the company’s continued commitment to sustaining investments across its upstream, midstream and downstream operations while adapting to shifting global energy dynamics.
The lower dividend follows a wider industry backdrop of fluctuating oil prices and challenging market conditions. Petronas previously recorded a decline in revenue and net profit in 2025 compared with the prior year, a factor that influenced the company’s more conservative payout for 2026. Nevertheless, the board’s decision aims to strike a thoughtful balance between delivering value to the government and maintaining financial flexibility for reinvestment and expansion efforts.
As Malaysia’s sole national oil company, Petronas’ dividend payments remain a key source of revenue for the government’s budget planning. The shift in dividend level has also reignited discourse among policymakers and industry watchers about the importance of economic diversification amid volatility in the global energy sector.
