Petronas counters tumble after news of settlement with Sarawak

Petronas has indicated that it will drop the legal case against the Sarawak government. – The Star photo.

PETRONAS Dagangan, Petronas Gas and Petronas Chemicals shares were all in the red today following reports that Petroliam Nasional Bhd (Petronas) is withdrawing its appeal at the Court of Appeal over Sarawak’s sales tax dispute.

The Sarawak government and Petronas will settle their dispute over a RM2bil state sales tax (SST) out of court, with the latter expected to withdraw its appeal at the Court of Appeal.

It was reported that Petronas will drop its legal action against the five per cent petroleum product sales tax sought by the state government and will resolve their dispute out of court.

Petronas was also reported to be in the midst finalising an agreement with involved parties with regard to the RM2 billion sales tax sought by the state government for last year.

“I’m taking a leap of faith that the sales tax issues — settling the deal with Sarawak are holding up proceedings a bit,” AxiCorp global chief market strategist Stephen Innes said.

On the oil and gas markets, Innes said the prices remained stable.

Brent and West Texas Intermediate (WTI) traded higher at US$42.48 per barrel and US$40.38 per barrel, respectively.

“The oil markets in general are viewing the recent OPEC compliance efforts in a favourable light and very oil-friendly as prices may march higher once the COVID-19 surge in the US abated in three of the most populous states,” he told Bernama.

At 3pm, Petronas Dagangan lost 94 sen to RM21.74, Petronas Gas was eight sen lower at RM17.08 and Petronas Chemicals went down seven sen to RM6.36. – Bernama

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