Petronas to boost Malaysia dividend 19% to $7.8 billion in 2027

State-owned energy giant Petronas is set to significantly increase its dividend payout to the Malaysian government, with a 19% boost to $7.8 billion planned for 2027. This increase is attributed to soaring oil prices and higher profits for the company.

Malaysia's Ministry of Finance, in its 2027 budget unveiled on Friday, anticipates a 4.7% rise in government revenue. This projection hinges on the assumption that average global crude oil prices will remain stable in 2027, leading to an estimated $15 billion in petroleum-related revenue for the country.

The planned dividend for 2027 amounts to 32 billion Malaysian ringgits, up from $6.6 billion (27 billion ringgits) for the current year. For 2026, Malaysia's petroleum-related revenue was estimated to be 15.1% of total revenue, with a lower Petronas dividend of RM27 billion projected despite an anticipated higher average global crude oil price of $85 per barrel.

Last year, Petronas' contribution to Malaysia's budget was expected to fall by 38% in 2026. However, following a surge in oil prices in 2026 due to geopolitical events, the dividend contribution was revised upward from an initial $5 billion (20 billion ringgits) to $6.6 billion (27 billion ringgits) for the current year.

Petronas reported a 15% increase in revenues for the first half of 2026 compared to the previous year, driven by higher domestic production, LNG exports, and elevated energy prices. Profit after tax and EBITDA also saw a 4% year-over-year increase. Earlier in 2026, Petronas launched Searah, an upstream company in partnership with Eni, and diversified its long-term LNG supply arrangements.