DILI (TOP) - The Quarterly Report of the Petroleum Fund of Timor-Leste from the Central Bank of Timor-Leste (BCTL) revealed that the balance of the Petroleum Fund increased to US$ 122.6 million, causing the balance of oil money to increase from $18.31 billion in the first quarter to $18.3 billion in the second quarter.
The Petroleum Fund Law stipulates that the Ministry of Finance establishes the investment strategy and the Central Bank of Timor-Leste (BCTL) carries out the operational management of the investment.
Thus, BCTL launched the Quarterly Report of the Petroleum Fund of Timor-Leste for the second quarter of 2026 which ends on June 30th. The report shows that the capital/balance of the Petroleum Fund in this quarter is $18.43 billion, compared to $18.31 billion in the first quarter of 2026.
The report also showed that total revenues received in the quarter amounted to $9.62 million and gross income from investments amounted to $719.09 million, composed of $141.48 million from interest/coupons and dividends received, and $577.61 million from changes in market value. Thus, the return of the Petroleum Fund during this quarter from the financial market was 4.05%, compared to its benchmark of 3.99%.
In this quarter, the total amount withdrawn from the Petroleum Fund amounted to $603.80 million, of which $600 million was transferred to the Treasury Account to finance the State Budget and $3.80 million to pay investment management costs.
Thus, since the establishment of the Petroleum Fund, total revenues amounted to approximately $25.30 billion, total returns from investment in the financial market amounted to $12.65 billion with an average annual return of 4.72%, and total withdrawals to finance the State Budget amounted to $19.66 billion.
The quarterly report, the Petroleum Fund law and the Operational Management Agreement are available on the Central Bank of Timor-Leste's portal.
On the other hand, the report from the Ministry of Finance reports that the change in the balance of the Petroleum Fund comes from:
* Investment return (US$ 712 million).
* Oil revenues (US$ 9.6 million) and
* Transfer to the State Budget (US$ 600 million).
From January to June 2026:
* Total income from the investment of the Petroleum Fund amounted to US$ 610 million
* Oil revenues US$ 18 million and;
* Transfer to the budget amounted to US$ 800 million.
The Petroleum Fund gave a return on investment of 3.98% in Quarter II, recovering from a fall of 0.55% in Quarter I. The return on investment from January to June 2026 was 3.41%.
Investing in Financial Markets returned 4.05% in QII. The Growth portfolio returned 4.99% in Q2, driven by a return on equity of 13.79%. The Fixed Income in the Growth Portfolio returns 0.44%, while the Liquidity Portfolio returns 0.55%.
The stock market recovered in the second quarter, after volatility related to the conflict in the Middle East and the sharp rise in oil prices in the first quarter. With conflict tensions falling and falling oil prices also reduced market concerns about inflation and improved investor sentiment. Continued strong corporate earnings and optimism about artificial intelligence also boosted global stocks.
Performance in mixed fixed income mandates. With US Treasury yields rising due to continued high inflation, benchmark indexes for 3-5 year and 5-10 year US Treasury Securities returned near zero. While global non-US Treasuries and TIPS give positive returns.
The US dollar appreciates in mid-2026, with the DXY Index appreciating 2.9%.
