PetDag records RM89.2m profit for 4Q20

The group also records lower revenue at RM4.4b due to decrease in sales volume and ASPs

By NUR HAZIQAH A MALEK / Pic By MUHD AMIN NAHARUL

PETRONAS Dagangan Bhd (PetDag) has recorded a lower net profit of RM89.21 million for its fourth quarter ended Dec 31, 2020 (4Q20), versus RM126.59 million posted in the previous year, due to external challenges such as sharp decline in petroleum product prices at the start of the year and movement restrictions following the Covid-19 outbreak.

The group’s revenue was also lower at RM4.39 billion versus RM7.79 billion for the quarter, marked down by lower sales volume and decrease in average selling prices (ASPs).

PetDag MD and CEO Azrul Osman Rani said though the year has been challenging, it was an enabler for innovation.

“We have accelerated our plans to diversify our product portfolio and digitalise our operations as part of our efforts in future-proofing the business.

“We foresee the current retightening of Movement Control Order restrictions to be a temporary challenge especially for the first quarter,” he said in a statement last week.

He added that the new breakthrough has created much excitement in the market and have received many positive testimonials from our customers.

“We have seen encouraging sales performance since the launch and we are optimistic that the new fuel will contribute even higher volume for our petrol segment once the travel restrictions are lifted,” he noted in the statement.

The company launched the Petronas Primax 97 with Pro-Race recently, which utilises a unique formulation and enhanced with the world’s first Advanced Dual Friction Modifier, thus increasing the fuel’s friction reduction by 25%.

In meeting customers’ changing purchase and consumption behaviour, PetDag also accelerated the expansion of its food and beverage offerings to include more ready-to-eat meals via its [email protected] initiative.

Part of PetDag’s non-fuel growth strategy, [email protected] offers an array of fresh and well-balanced premium food at affordable prices to address the increasing demand for food-to-go solutions. To date, there are nine Petronas stations that offer [email protected] and the company plans to expand to 200 stations by the end of 2021.

PetDag will also work towards Petronas’ pledge of achieving net-zero carbon by 2050 and plans are underway to offset its carbon footprint.

As part of the sustainable environment agenda, PetDag has diversified its product portfolio in 3Q20 to include the marketing of liquified natural gas (LNG) as a cleaner fuel option.

Via Petronas Group’s virtual pipeline system, PetDag is the first in Malaysia to supply LNG to off-grid customers in Peninsular Malaysia.

Additionally, it is also marketing LNG to the marine industry via Petronas’ first LNG Bunkering Vessel, the MV Avenir Advantage, which allows for ship-to-ship transfer, the first in South-East Asia to offer such a solution.

To remain ahead in the industry, PetDag will continue to leverage its innovative solutions including Setel, a mobile app that enhances customers’ experience at Petronas stations, as well as ROVR, Malaysia’s first mobile refuelling service for commercial customers.

PetDag has declared an interim dividend of 17 sen per ordinary share for 4Q20. For the financial year 2020, PetDag has declared a total dividend of 38 sen per ordinary share, which represents a 96% payout ratio.