by NUR HANANI AZMAN/ pic by MUHD AMIN NAHARUL

PETRONAS Dagangan Bhd (PetDag) recorded a net loss of RM29.42 million for the first quarter ended March 31, 2020 (1QFY20), compared to a net profit of RM291.19 million it made in the same period the year earlier.

The group noted it experienced challenging market conditions towards the end of the 1Q arising from the impact of the Covid-19 pandemic globally, as well as the constraints of the Movement Control Order (MCO).

Revenue fell by RM532 million to RM6.5 billion as overall sales volume declined by 4% in both the retail and commercial segments and average selling prices (ASPs) dropped by 3%.

The group recorded a loss before taxation of RM18.4 million compared to a profit before tax of RM382.9 million, mainly from lower gross profit following a sharp decline in Means of Platts Singapore prices trend, lower sales volume towards the end of the quarter and higher operating expenses attributable to professional services costs and depreciation costs.

“Retail segment revenue decreased by RM234.5.million mainly due to lower volume by 5% in tandem with declining demand towards the end of the quarter following the implementation of the MCO, as well as lower ASPs by 2%.

“Commercial segment recorded lower revenue of RM297 million due to lower ASPs by 5% and lower sales volume by 4% mainly towards the end of the quarter as a result of lower demand following the implementation of the MCO,” it said in a filing to Bursa Malaysia yesterday.

PetDag’s 1Q result has been impacted by declining petroleum product prices following volatility of crude oil prices.

The average Brent contract price in 1Q20 was US$50.26 (RM221.14)/ barrel compared to previous quarter of US$63.32/barrel as the sharp decline in March 2020 was driven by the rise of Covid-19 pandemic and OPEC+ price war.

PetDag has declared an interim dividend of five sen per ordinary share amounting to RM49.7 million for the quarter, payable on June 17, 2020.