KUALA LUMPUR, March 29 — Petronas Dagangan Bhd (PDB) 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 PDB 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 PBD’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 economic environment and new ways of working.
“The challenge is real, but we are confident that with the commitment of our staff and clear strategies, PDB will be able to continue delivering sustainable value for our shareholders,” he said.
He shared that PDB’s inherent resilience had been tested but it managed to address the challenges proactively while ensuring undisrupted operations.
Working closely with its suppliers, partners and customers, he said PDB had ensured that the needs of its customers were met given the robust supply chains and reliable business operations.
“These efforts had enabled our company to remain profitable and continue delivering value for our shareholders,” he said.
Md Arif said the need to future-proof PDB’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 fuels business,” he said.
Citing figures from the International Monetary Fund (IMF), he said the world economy shrank by 3.5 per cent 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,” he said.
He said the overall performance of PDB, the principal marketing arm of Petroliam Nasional Berhad (Petronas), in the current difficult environment was testament to the robustness of its risk management planning and strength of its leadership team and businesses.
“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. — Bernama
