Petros Sarawak takeover bad news for Petronas earnings

RHB Research has flagged operational disruptions for Petronas following Petros' takeover of natural gas trading from Petronas in the second half of 2024.

Petros is Sarawak’s state-owned oil and gas company.

RHB Research says the earnings impact on Petronas remains uncertain but Petronas is widely expected to cut its RM300 billion capital expenditure for 2023-2027.

This is to ensure it can continue to pay sizeable dividends to the federal government.

Petronas paid out RM40 billion of dividends in 2023 and is expected to payout RM32 billion in 2024

RHB Research however remain confident of a resolution between Petronas and Petros without jeopardising existing productions and future domestic investments.

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