Petronas Dagangan Q1 pre-tax profit drops to RM223m

KUALA LUMPUR, May 6 — Petronas Dagangan Bhd’s pre-tax profit for the first quarter ended March 31 fell to RM223.13 million from the RM326.96 million in the same period last year.

Revenue, however, rose to RM8.29 billion from RM7.61 billion, from an increase in average selling prices and sales volume by 7.2 per cent and 1.3 per cent respectively, it said in a filing to Bursa Malaysia today.

Petronas Dagangan said revenue from retail increased by RM480.3 million owing mainly to the higher selling price of subsidised mogas and diesel as announced by the Malaysian government on September 3 last year.

It said the segment revenue was further supported by an increase in sales volume, particularly for diesel, by 10.5 per cent arising from additional quota approved by the Ministry of Domestic Trade, Cooperatives and Consumerism.

Revenue from the commercial segment also increased by RM193.2 million on higher average selling price of 5.7 per cent, despite a slight dip in sales volume of 1.1 per cent.

On prospects, Petronas Dagangan said it was committed to defending its overall market leadership position and grow the company’s business domestically through strengthening its brand and assets, and continuously enhancing management of its customer relationship.

The company will also continue efforts to optimise cost management by enhancing the efficiency of supply and distribution, and improving the operation of its terminal.

It said the retail segment was expected to maintain its margin contribution, mainly from the sales of subsidised petroleum products by leveraging on the extensive station and dealer network, differentiated products and service offerings to continue to meet and exceed customer expectations.

The commercial segment was expected to maintain its financial performance by leveraging on the customer base in tandem with an increase in government- and private-sector spending on infrastructure projects.

“The current product mix will be an advantage as it allows the segment to capitalise on opportunities arising from the volatility of petroleum product prices,” it said.

The segment would also leverage on its superior logistics, personalised services and differentiated offerings to defend market leadership. — Bernama

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