By Ram Anand | Updated on Oct 09, 2026 at 08:30 AM
Petroliam Nasional Bhd. is set to increase its dividend payout to the Malaysian government by 19% next year as higher energy prices boost profitability.
Petronas, as the company is known, will contribute 32 billion ringgit ($7.8 billion) to state revenue in 2027, compared with 27 billion ringgit this year, according to Malaysia’s Ministry of Finance. The amount due in 2026 is a substantial revision from its initial commitment to pay 20 billion ringgit.
The higher payout underscores improving conditions for the state oil and gas firm after years of declining earnings, after brent crude surged past $100 per barrel due to the US war with Iran. Malaysia expects oil prices to average $85 per barrel in 2027, near the current average of about $89 so far this year.
Petronas’ net income climbed 4% to 27.2 billion ringgit in the first six months of 2026 from the same period a year earlier.
Malaysia has sought to reduce its reliance on oil and gas, though petroleum-related proceeds for 2027 are expected to rise to 61.2 billion ringgit, or 16.1% of government coffers, from a revised 15.1% this year. Oil and gas income made up about 41% of total revenue in 2009.
The government previously projected brent prices to average between $60 and $65 per barrel this year, before the conflict in Iran disrupted supplies and pushed prices higher. While Malaysia is one of the largest exporters of liquefied natural gas globally, the country remains a net importer of oil.
Petronas, which is responsible for securing fuel supply for domestic use, is locked in a dispute with Sarawak’s oil company Petroleum Sarawak Bhd. over distribution rights for gas in the Bornean state.