By BERNAMA / Pic by MUHD AMIN NAHARUL

PETRONAS Dagangan Bhd (PetDag) is well-positioned to continue thriving in what is increasingly being referred to as the next normal amid signs of recovery in 2021 and despite a volatile outlook for the year ahead.

Its chairman Datuk Md Arif Mahmood noted that PetDag has been in business for almost four decades and hence, truly appreciates the efforts that will be required to navigate the next normal and ensure long-term sustainability of the company.

In PetDag’s annual report, he said the unprecedented Covid-19 pandemic combined with increased economic uncertainties and oil price volatility tested the resilience of governments and businesses alike, resulting in one of the toughest business environments that the company had ever faced.

“We also saw in 2020 the acceleration of energy transition commitments, innovation and collaboration, as governments and businesses adapted to the elevated societal expectations to address climate change impacts, depressed eco- nomic environment and new ways of working.

Working closely with its suppliers, partners and customers, he said PetDag had ensured that the needs of its customers were met given the robust supply chains and reliable business operations.

Md Arif said the need to future-proof PetDag’s business against rapid changes affecting the energy industry had always been part of the company’s strategy.

“The demand for cleaner forms of energy, increasing fuel-efficiency of vehicles and the rise of e-commerce have accelerated the need to build and scale new businesses to complement our fuel business,” he said.

Citing figures from the International Monetary Fund, he said the world economy shrank by 3.5% in 2020, despite the gradual rebound in the second half of the year.

“However, our robust strategy and ability to swiftly respond to the crisis had allowed us to capitalise on the situation, especially when the market recovers.

“As we push forward our next phase of our transformation journey, we shall amplify efforts on future-proofing the organisation by diversifying our revenue streams further,” he added.