Petronas goes bust by 2018?

By Bob Yong
12th June 2008

Petronas made a profit of RM570 billion, out of which, the government received RM335.7 billion. It will go burst within 10 years if the profit payout continues, said its President and CEO, Tan Sri Hassan Marican, as reported in the media.

This man is talking rubbish. He does not understand what profit is. I am no accountant but I know 3(income) minus 2(outgo) equals to 1(profit). He is talking about 2 and we are looking at 1.

Profit arises when the income exceeds the outgo. All expenses including R&D, cost of drilling and exploration works, salary and many other expenses are taken into account before profit is ascertained. Profit drops when expenditures go up, assuming the revenue stays the same. Understandably, profit will drop due to many reasons. The glaring truth is that Petronas’s accounts and profits are never made transparent. Money spends on many unnecessary projects are already the talk of the town.

Bloggers said this.
Quote: Terengganu earned an estimated RM30 billion. Sabah and Sarawak have also earned an estimated RM30 billion.
Petronas paid the government an estimated RM1 trillion by way of corporate tax. Furthermore, Petronas did not pay Terengganu, Sabah, Sarawak, or the federal government an estimated RM900 billion by way of corporate tax.
Petroleum Development Act 1974 requires Petronas to make its accounts public. Petronas' accounts are not published and are not tabled before Parliament. Unquote.

Demonstrators asked the government this.
Where has the money gone?

The government has not satisfactorily explained to the rakyat on the tremendous petrol price hike. What the minister-in-charge has done was pulling wool over the rakyat’s eyes, saying something like changing our lifestyle, cutting ministers’ entertainment expenses and no big cars for ministers, etc. Not only the rakyat are not able to see the picture painted so far, the people running the government are equally blurred.