KUALA LUMPUR, May 30 (Reuters) - Malaysia may collect up to $2.3 billion more in taxes and dividends from Petroliam Nasional Berhad, or Petronas, this year, a finance ministry official said on Wednesday, as firmer oil prices boost profits at the state energy firm.
Its contribution to government revenue typically increases with the company’s profitability. Last year, Petronas paid 5.8 billion ringgit more to federal and state governments as profits and oil prices rose.
A higher contribution from Petronas this year will help narrow the government’s revenue shortfall from effectively scrapping the goods and services tax, Ong told BFM radio station on Wednesday.
“These are all the options on the table,” he said.
Petronas said it expected overall year-end performance to be “satisfactory” subject to the volatility of oil prices and foreign exchange rates. The company is known to be conservative with its outlook.
Petronas, like other oil majors, has taken a hit from lower oil prices, but sharp cost cuts - along with some recent stability in oil prices - helped the company’s profits and margins.