Petronas’ RM600 billion profit: Where has it all gone?

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So the figure has been revealed. Petronas’ group profit before taxes, royalties, dividends and export duties amounted to RM570 billion for the period from its establishment in 1974 to 31 March 2007.

If you include the figure for the period until 31 March 2008, then you are probably looking at a figure closer to RM700 billion, with the higher oil prices.

Let’s see the breakdown of that RM570 billion:

Payments to the government (royalties, export duties, taxes and dividends) – RM359 billion

Allocations for shareholders, royalties and taxes abroad – RM41 billion

Profits re-invested in Petronas operations – RM170 billion

Total RM570 billion

(In case you are wondering where I got these figures from, they are from an oral response in Parliament to a question put forward to the Prime Minister by the MP for Bagan, Lim Guan Eng.)

So the government has received RM359 billion from Petronas over the years. If we include the year ended 31 March 2008, the figure would be in the RM400 billion range.

The big question is, has the government made the best use of all that money? You and I know the answer to that. If the money had been used effectively, we could have provided affordable housing for everyone in this land, invested in an excellent public transport system and come up with a first class public health care system providing universal access to all Malaysians.

But have we? Look how much has been wasted and squandered over the years. Think of all the natural gas subsidies dished out by Petronas to the Independent Power Producers (private electricity companies), which have been raking in billions in profits over the years. (And now they want to reduce the subsidies for ordinary Malaysians.) Think of the billions spent on bailing out banks. And remember the colossal sums spent on building Putrajaya, building the Twin Towers, hosting the Malaysian Grand Prix, sponsoring the  Petronas racing teams and setting up the Malaysian Philharmonic Orchestra. All this while there are people without homes of their own, without a balanced and nutritious diet, without electricity and water in rural schools…

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It is truly a lost opportunity, considering that we will soon become a net importer of oil in a few years’ time.

Meanwhile, ordinary Malaysians have no access to Petronas’ detailed accounts. Where is the accountability and transparency in the use of these massive amounts of public funds?

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astina
astina
15 Jul 2010 4.28pm

The m… has to shoulder all the blame for this fiasco…

his culture of devide and rule plus all the mega projects to cronies ensured we the rakyats will be left with nothing !!

Budak kampong
Budak kampong
18 Jun 2008 8.35pm

Dear Anil, to answer where has the money goes is like asking where does the govt gets the money to builds all the things that Malaysia have since 1974 till today (since PETRONAS starts paying dividends, taxes and royalty from day 1). Also for you and others to insinuate that they money has been grossly misspent is equally not right. I have no answers as well. From my observation, Malaysia and its population had a good going so far. Our people has been living the luxury live through our government grants, subsidy, scholarship etc. We have 1st world infrastructures which… Read more »

Izkandar
Izkandar
16 Jun 2008 10.52pm

Dear Anil I refer to your article above and allow me to quote “Look how much has been wasted and squandered over the years. Think of all the natural gas subsidies dished out by Petronas to the Independent Power Producers (private electricity companies), which have been raking in billions in profits over the years.” Your claim that Petronas subsidises IPPs is incorrect and this is based on legal facts (PPAs) and therefore verifiable. For your information, electricity tariff comprises of the following components: (a) Cost of fuel which is gas. (b) Cost of the planting up of power plants which… Read more »

jalil apa macam
jalil apa macam
10 Jun 2008 9.02pm

TO ALMOST ALL YBS’ OF SABAH AND ALMOST ALL SABAHAN MALAYSIAN LEADERS THIS PETRONAS’REVELATION MAKE U GUYS STERLING COWARDS IF YOU WILL JUST DANCE TO SAME NUMBER OF STEPS 1-2-3 N 5% 4U N 1-2-3 N ALL 4ME. MAKE A MOVE YOU HAVE THE BALL ON OUR SIDE. ITS HIGH TIME TO DEMAND WHAT IS LEGALLY FAIR FOR THE SABAHAN MALAYSIANS. I REFUSE TO ACCEPT THAT ALL OF YOU ARE PERFECT SAMPLES OF LIVING ANESTHESIA.WE HAVE THE PARLIAMENT, STAND STRONG AND ASK! UNTIL IT SHALL BE GIVEN.SEEK! AND YOU WILL FIND THE STRENGHT. KNOCK ! AND THE DOOR WILL BE… Read more »

charlie
8 Jun 2008 8.31am

In this fast changing world, in this energy hungry world. In this wealth seeking world, in this power seeking world. Learn to be thrifty, learn to manage your cash flow. Learn to balance your asset, debt and liquidity. Learn to networks and earn money every minutes, every hours. Learn to read, see, hear and think. Learn to make proper judgement. Whatever people said, whatever angers , whatever they did…. They find ways to hide, to defend with the enormous wealth . We must find our wealth, build our wealth in the difficult time. Many stories told repeatedly, will you get… Read more »

upset malaysian
upset malaysian
7 Jun 2008 12.12am

this is really hopeless,who can help us?

EzRich Project
EzRich Project
5 Jun 2008 9.51pm

“Think of the billions spent on bailing out banks. And remember the colossal sums spent on building Putrajaya, building the Twin Towers, hosting the Malaysian Grand Prix, sponsoring the Petronas racing teams and setting up the Malaysian Philharmonic Orchestra.”

… Don’t forget also, the Submarines, the space tourist programme, the Russian MIG …

mut
mut
5 Jun 2008 1.17pm

Correct me if i am wrong, but doesn’t Petronas have debts totalling over RM100b on its books also? This was also revealed some time ago in a question in Parliament. Looks like the reinvestment figures doesn’t it? Or in other words, the so-called reinvestment figure pun dah kena cangkul? This is the article from 2004 in Malaysiakini. The debts are quite considerable. Petronas posts record profit, outlook bullish Jun 30, 04 4:06pm National oil firm Petronas today said net profit for the financial year ending March 31, 2004 rose 56.6 percent to a record RM23.66 billion due to higher crude… Read more »

mut
mut
5 Jun 2008 12.32pm

Correct me if i am wrong, but doesn’t Petronas have debts totalling up to RM170b on its books also? This was also revealed some time ago in a question in Parliament. Looks like the reinvestment figures doesn’t it? Or in other words, the so-called reinvestment figure pun dah kena cangkul? This is the article from 2004 in Malaysiakini. The debts are quite considerable. Petronas posts record profit, outlook bullish Jun 30, 04 4:06pm National oil firm Petronas today said net profit for the financial year ending March 31, 2004 rose 56.6 percent to a record RM23.66 billion due to higher… Read more »

Sqaure One
Sqaure One
5 Jun 2008 11.21am

Sure the past governments and current has squandered all our MONEY for their selfish deeds.Take a look at our neighbour Singapore , the ruling party may be tough but all intended measures and money are for the nation. The building of the nation…eg roads, public transport, universities, libraries…..Put the oil money back to the RAKYAT, for the RAKYAT…and the nation will prosper by itself and everyone will be wealthy together instead of a few ex-ministers and their cronies!!

ismail
ismail
4 Jun 2008 11.38pm

Price of petrol up by 40%..electricity up by 18%..which is reasonable and inline with global prices BUT now that we have to change our lifestyles..cut costs etc>>shouldn’t the big crony or GLC companies owners,CEOs etc also try to do the same? Penang Second Crossing at Rm 4.8b is 30% over priced Double Tracking (Gemas to Padang Besar)at 16.5b is 25% over priced Over priced means above and beyond “above average” construction margins of 12.5%. Thus ,just reviewing prices of these 2 projects will save us Rm 5 billion. And how can the Rm 5 billion benefit Malaysians?The answer is simply… Read more »

Concern
Concern
4 Jun 2008 9.21pm

I am no fan of Dr. M but to be fair to him, he gave us Twin Towers, KLIA, Sepang Formula 1, Putrajaya, Penang Bridge, LRT, Proton, MSC – when the price of oil is between 11 to 28 per barrel. Sure there are lots of wastage but at least we have something. Now oil is >150 per barrel. After 5 years what have we got??????????

I'm Malaysian
I'm Malaysian
21 Jun 2012 2.24pm
Reply to  Concern

Please… the total $$ to build all these stuff doesn’t even need RM600B (profit) – RM250B (deficit) = RM350B!!! You claim that at “when the price of oil is between 11 to 28 per barrel”. Yes, as you said, all those project also didn’t suppose to cost that crazy price (RM350B?!…) as well at that time!!!

tmf
4 Jun 2008 9.00pm

Some of my friends suspected that our oil has been presold via forward contract to Japan some years ago at very cheap price. Perhaps someone from PR can ask about this at the next paliament sitting.

Wong Chee Kong
Wong Chee Kong
4 Jun 2008 5.13pm

All we can do is to leave it to God Almighty to deal with such blatant abuses if nobody can account for where all these petro-bucks have gone to. May the wrath of God and Karma come upon you!

prabalat
prabalat
4 Jun 2008 2.11pm

As a saying goes, ” there will be liars and thieves so long as the people are ignorent”. 600 billions or whatever the people won’t be bothered.best joke is ………those guilty of this acts will be punished by the god.ignorent is bliss

alvin lee
alvin lee
4 Jun 2008 1.04pm

power tends to corrupt and absolute power corrupts absolutely. It is therefore important that we, as citizen, must ensure that the ruling government is not too strong may it be BN or PR.

Malaysia Digest
4 Jun 2008 11.08am

You are absolutely right. The money could also be use to built hospitals and roads in East Malaysia.

Jim
Jim
4 Jun 2008 10.20am

Anil I was at the DAP Ceramah in SS2 just before 8 March, when Tony Pua highlighted that the price of oil was USD 25/barrel about 6 years ago, as compared to then over USD 100/barrel (and now USD 135/barrel). Tony made a very good point about the fact that the figures do not make sense given that whilst the price of petrol has skyrocketed at least by an additional 300%, Petronas only managed to report an increase in profit of 20% or so (if I remember Tony’s figures correctly). I then realised that something is wrong somewhere, and I… Read more »

george doraisamy
george doraisamy
4 Jun 2008 10.04am

It so sad that a nation so blessed with such abundance is being (undermined) by thieves.I sincerely hope and pray that the PAKATAN RAKYAT will make good of whats gone bad.I have put my migration plans on hold.Being a third generation Malaysian Indian,why should i ever give up what my forefathers bleed and died for in building this nation and securing my rights as a citizen.

Param
Param
4 Jun 2008 9.33am

Lets wait for the dooms day for arrogant UMNO….

voter
voter
4 Jun 2008 8.05am

Petronas money is not BN’s money, and should not go to BN cronies! Petronas money is rakyat’s money, give it to the rakyat! Say NO to BN, Say YES to PAKATAN RAKYAT!

Cinta Malaysia
Cinta Malaysia
4 Jun 2008 2.45am

Effective in its economy and clarity of words, this write up needs to be translated into Bahasa and shot off to any blog, publication that would host it

…..and write the amount as 600,000 millions so that those of us who are not accountants can get the sum right. If we divide the spoil for all 26 million Malaysians living here, thats RM 23,077 for EVERY person….. thats RM 115,385 for EVERY family of 5. Now, just imagine for yourself…..

casper
casper
3 Jun 2008 11.05pm

Effective in its economy and clarity of words, this write up needs to be translated into Bahasa and shot off to any blog, publication that would host it Anil.

Fade-up
Fade-up
3 Jun 2008 11.00pm

As long as Malaysia government has no transparency and the leaders has no accountability. We can, for the next 1000 years, forget about equal opportunity, forget about equal wealth distribution, forget about nation development … the list goes on where we can ask our 10 generations down the road (especially those that has no connection to BN) forget about having a good life and future. Even if one day we kick BN out from the government, are we able to recover what we have lost, are we able to put all these monsters and monkeys into jail. Even if we… Read more »

Enforcer
Enforcer
3 Jun 2008 10.15pm

Oh mama mia!!! Approximately RM 1 bil a month for the last 35 years ( till 03/08 ) What more evidence do we rakyat need!!! Time to move on before our children are made to beg in the streets ( don’t think too far stretch for our grandchildren ) Real shame the situation we’re in now, with all the resources at our doorsteps, we could only envy our neighbour S’pore ( who do not even have enough water to drink ) yet their GDI, standard of living and government is way above ours. Hey, goons, time to relinquish and payback… Read more »