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News Interruptus!


Petronas posts record earnings
RM35.5b net profit is highest in 30-year history

This news headline on page 1 of TheEdge FinancialDaily today greeted me this morning, but do I rejoice?

No, not as an ordinary Malaysian citizen, for through the years I did not see any benefit flowing to us the Rakyat. The government tells me every time there is a petrol price hike that it’s because of increasing subsidies. I don’t buy that.
I ask: why can’t Petronas share some of the yearly increasing profits with the ordinary Malaysians.

I guess the directors, top managers and shareholders of the NATIONAL OIL CORPORATION are all laughing their way to the bank this morning. And every time there is an international oil price rise, the oil pump price also is raised, causing another round of inflation.

By right, Malaysians should enjoy a decrease in pump rises with every increase in world oil prices because out nation’s crude exports are of superior quality. And hence command premism prices. Can Petronas please explain this?

Just an aside: Long queues last night at petrol stations were triggered off by “rumours” of another 20sen per litre, communicated widely via phone calls and SMS; I personally received one at 7.00pm. I asked one friend why join the rush to fill up RM30 on a one-offsavings of merely a few ringgit? His curt answer: I don't want Petronas to earn even RM3 more if I have to line uo for half an hour! I can use the money for a plate of mee goreng.

Is that what a corporation, holding the nation’s top natural resource on trust of the people, all about, they enjoying the perks and privileges off a nation's wealth, but foregetting the ordinary man-in-the-strreet? Do you think you earn goodwill by putting up feel-ggod messages over TV come every Malaysian festive season? I doubt it, I very much doubt it, I certainly doubt it!

Let’s look at the key, relevant points of the news report, from theSun business supplement:

PETROLEUM Nasional Bhd (Petronas) group posted its highest earnings in its 30-year history with a net profit of RM35.5billion , wich would provide it with funds to undertake capital expenditure of RM17.35billion for the current financial year, according to Petronas president and CEO Tan Sri Mohd Hassan Merican.

Announcing the corporation’s latest results, he said for financial year ended March 31, 2005, Petronas’ net profit was 50.3 percent higher than the RM23.66billion in FYE March 31, 2004.

Desiderata: suggests that that every citizen should have been given a dividend in the form of any annual “red packet” – maybe RM1,000 to RM2,000 for those in the income bracket of monthly salary of RM2,000 and below, with increasing quantum from the highest of RM2,000 on a declining trend so that the truly “needy” Malaysians get a taste of Malaysia’s sweet oil?

I remember the Sabah foundation, using funds from its state-sponsored investments, had a similar practice of declaring an annual dividend. Is this “caring” practice still in force today?

Desiderata interrupts the Part 3 of Losing My Country…? As he feels this news development bears relevance to the topic’s discussion. Oil is food for thought as an Interlude, not very pleasant, yet necessary.