PetDag’s net profit rises 27.8% to RM314.4m in 2Q18


Petronas Dagangan Bhd’s (PetDag) net profit for the second quarter ended June 30, 2018 (2Q18), rose 27.79% to RM314.42 million from RM246.04 million posted a year ago on the back of higher revenue recorded in its retail and commercial segments.

In an exchange filing yesterday, PetDag said the retail segment revenue in 2Q18 increased by RM128 million, mainly attributable to an increase in average selling price by 5%, while the commercial segment recorded higher revenue by RM532.9 million driven by an increase in average selling price of 18%.

PetDag’s revenue for the period under review also increased 9.97% to RM7.28 billion, against RM6.62 achieved in 2Q17.

“The results of the group’s operations are primarily influenced by petroleum product prices, which have strong correlation to crude oil prices, and Malaysia’s economic growth as reflected in the gross domestic product, consumer sentiment index and manufacturing index,” the filing stated.

It said the continued volatility of oil price, economic and consumer sentiment will have impact on the group’s profitability.

“The group will continue to focus on inventory management, supply and distribution efficiency as well as operating expenditure optimisation to sustain the group’s profitability,” PetDag added.

The Petroliam Nasional Bhd’s (Petronas) marketing arm also posted 6.75% growth in profit to RM532.9 million year-to-date, while revenue improved 7.17% to RM14.34 billion.

PetDag said its retail segment will continue to focus on enhancing customer experience through continuous upgrading of stations and convenience stores.

In addition, the segment will pursue strategic partnerships to provide added convenience to customers as well as diversifying its point-of- sales to grow in the e-commerce segment.

Liquefied petroleum gas (LPG) and lubricant businesses will focus on strengthening distribution channels to grow their market share.

PetDag added that growth in manufacturing activities may result in stronger demand for petroleum products, which provides an opportunity to the commercial segment.

Commercial business and bulk LPG sales will maximise value through effective sales strategies, leveraging on its superior logistics, personalised services and differentiated offerings to sustain existing markets and capture new markets.

PetDag has also declared an interim dividend of 16 sen per ordinary share amounting to RM158.95 million for the quarter, to be paid on Sept 19, 2018.