Petronas to Raise Malaysia Dividend 19% to $7.8 Billion for 2027

State-owned energy giant Petronas will boost the dividend it owes the Malaysian government by 19% in 2027 as oil prices soar and raise profits at the company.Malaysia’s Ministry of Finance estimated in its 2027 budget unveiled on Friday that government revenue is estimated to rise 4.7% next year.Assuming average global crude oil prices remain stable in 2027, Malaysia expects its petroleum-related revenue to hit $15 billion, or 61.2 billion Malaysian ringgits, next year, thanks to higher dividends from Petroliam Nasional Bhd (Petronas).The state energy firm is set to boost its dividend contribution to Malaysia’s budget to $7.8 billion (32 billion ringgits) in 2027, up from $6.6 billion (27 billion ringgits) for this year.For 2026, Malaysia’s petroleum-related revenue is estimated to drop to 15.1% of total revenue, due to a lower Petronas dividend of RM27 billion, despite a higher average global crude oil price projection of $85 per barrel.Last year, the contribution of national energy giant Petronas to Malaysia’s budget was expected to crash by 38% in 2026, to the lowest level since 2017, as oil prices were falling at the end of 2025.But as oil prices surged in 2026 in the wake of the Iran war and the closure of the Strait of Hormuz, the dividend contribution was revised up from just $5 billion (20 billion ringgits), to $6.6 billion (27 billion ringgits) for the current year.Petronas’ revenues rose by 15% in the first half of 2026 from a year earlier, thanks to higher domestic production and LNG exports and soaring energy prices. Core earnings, or EBITDA, and profit after tax also rose by 4% each year-over-year.Earlier this year, Petronas launched Searah, a new upstream company jointly owned with Italy’s Eni to tap upstream discoveries in Malaysia, Indonesia, and Suriname. It has also diversified long-term LNG supply arrangements via strategic partnerships.By Charles Kennedy for Oilprice.com More Top Reads From Oilprice.comAustralia Close to Finalizing Gas Reservation Plan for LNG ExportersAsian Refiners Ditch U.S. Oil as Supertanker Rates Hit $82 MillionCrude Oil is Underpriced, Energy Aspects Says