PetDag posts lower Q3 net profit of RM239m

PETALING JAYA: Petronas Dagangan Bhd (PetDag) saw a 11.6% dip in net profit for the third quarter ended Sept 30 to RM239 million, from RM270.3 million a year before due to a lower gross profit for Mogas and diesel following higher product cost and less favourable MOPS prices trend compared to the corresponding quarter.

The group also noted there had been higher depreciation and amortisation in the retail segment and higher operating expenditure in the commercial segment during the quarter, which also contributed to the lower profit.

Quarterly revenue also was marginally lower at RM7.8 billion, from RM7.81 billion previously. An interim dividend of 16 sen per share was also declared for the quarter.

“Retail segment revenue increased by RM90.8 million contributed by higher sales volume of 6% following improved station productivity, higher number of stations in operation and introduction of the new PETRONAS PRIMAX 95 with Pro-Drive.

“Commercial segment recorded lower revenue of RM104.4 million following lower average selling prices of 10%, offset by an increase in sales volume of 8%. The increase in volume was mainly attributable to diesel following higher demand from upstream sector. In addition, volume for Jet A1 grew contributed by higher demand from existing customers,” the group said in a Bursa filing.

Both LPG business’ sales volume and gross profit grew marginally by 0.3%.

Lubricant business’ sales volume and gross profit decreased by 16% and 13% respectively following overall lower demand from the industry amidst a competitive market landscape.

In a statement, PetDag managing director and CEO Datuk Seri Syed Zainal Abidin Syed Mohd Tahir said sustaining volume growth helped to cushion the group against the impact of continued oil price volatility.

For the nine months ended Sept 30, PetDag saw a 12.5% drop in net profit to RM703 million, from RM803.2 million. Meanwhile, revenue over the period grew 1.5% to RM22.5 billion from RM22.17 billion previously.

Moving forward, Syed Zainal said PetDag would continue to push for volume growth.

“[We will] leverage our high quality products, extensive supply and distribution chain, as well as our vast network of stations and partners. Efforts are also in place to grow our non-fuel segment, through widening the differentiated offerings at our stations and Kedai Mesra.”

“At the same time, we will ramp up our new ventures, such as Setel, in creating new revenue streams that ensure sustainable growth for the company. All these initiatives will be driven by our passion to provide our customers a seamless and frictionless experience,” he said.

source https://www.thesundaily.my/business/petdag-posts-lower-q3-net-profit-of-rm239m-NA1640582