PetDag, PetGas report higher net earnings in 4Q17

By ALIFAH ZAINUDDIN & FARA AISYAH / Pic By BLOOMBERG

PETRONAS Dagangan Bhd (PetDag) reported a higher net profit for its fourth quarter ended Dec 31, 2017 (4Q17), as a result of the increase in average selling price (ASP) following the rise in Mean of Platts Singapore prices.

The domestic marketing arm of Petroliam Nasional Bhd (Petronas) saw its net earnings growing 6.5% year-on-year to RM278.6 million against RM261.5 million, while turnover for the quarter was up by 18.6% to RM7 billion from RM5.9 billion a year ago on higher contribution from both its retail and commercial segments.

The company told Bursa Malaysia in a filing yesterday that on a full-year basis, net profit jumped 69% to RM1.6 billion in 2017 from RM944.6 million in 2016 as a result of a 25% increase in ASP, despite a slight cutback in volume sold for the year.

Overall revenue surged to RM26.7 billion versus RM21.5 billion recorded in the previous year.

“The results of the group’s operations are primarily influenced by petroleum product prices, which have a strong correlation to crude oil prices and Malaysia’s economic growth.

The group expects the Brent to continue to be volatile,” the company said in a statement.

The group will also continue to focus on inventory management, supply and distribution efficiency, as well as operating expenditure optimisation to ensure resilience.

An interim dividend of 27 sen per ordinary share and a special dividend of 22 sen per ordinary share have been declared for the quarter, payable on Mar 27, 2018.

In a separate filing, Petronas Gas Bhd (PetGas) posted a 4.7% growth in 4Q17 to RM486.7 million from RM465.1 million recorded a year ago, an increase that is attributed to higher revenue and share of profit from one of the group’s joint-venture companies.

The gas infrastructure and utilities company’s revenue for the period increased 13% to RM1.3 billion from RM1.2 billion achieved in the corresponding quarter last year, mainly a result of the group’s new liquefied natural gas (LNG) regasification terminal in Pengerang, which began operations in the quarter.

PetGas said the revenue growth was further supported by higher revenue from its gas processing and utilities segments on the back of a higher performance-based structure income and favourable selling price respectively.

“The group’s performance is expected to remain robust for 2018, backed by its strong and sustainable revenue streams from existing gas processing agreement and gas transportation agreements signed with Petronas.

“Furthermore, revenue stream for the regasification segment will grow with the first full year of operations at the group’s new LNG Regasification Terminal in Pengerang,” the company added.