“The board has just approved it, and that is something that we can contend with, having evaluated more of our growth and reinvestment needs, also servicing borrowings,” he said after announcing the group’s 2025 financial results, Bernama reported.

Petronas reported a lower profit after tax of RM45.4 billion for 2025, an 18% decline from the RM55 billion reported the previous year.

Revenue fell by 17% from RM320 billion in 2024 to RM266 billion, through lower average realised prices, lower sales volume, foreign exchange impact, and the divestment of South Africa’s energy group Engen Group Ltd.

Petronas is a major contributor to the government’s coffers, generating billions in annual revenue.

The national oil company paid RM32 billion in dividends last year, with its lowest payouts over the past decade being RM16 billion in both 2016 and 2017.

Prime Minister Anwar Ibrahim has previously said the government cannot be too dependent on Petronas for funds. Anwar, who is also the finance minister, said the government has to “bear with” the dwindling dividend payout.

The 2026 dividend payment comes on the back of capital expenditure of RM41 billion. Tengku Taufik said capital expenditure over the next five years is expected to average RM45 billion to RM50 billion “depending on the phasing of projects as they come along”.

He said “geopolitical headwinds in the industry” are expected to persist in the coming years.