Petronas Dagangan’s profit soars in Q4 amid lower price environment

FILE PHOTO - A logo of a Petronas fuel station is seen against a darkening sky in Kuala Lumpur, Malaysia February 10, 2016. To match Exclusive PETRONAS-M&A/ REUTERS/Olivia Harris/File Photo

KUALA LUMPUR: Petronas Dagangan Bhd (PetDag) finished its 2016 financial year with a larger profit than in the previous year, thanks to a strong boost achieved in the final quarter (Q4).

In a filing with Bursa Malaysia, the national oil company’s domestic marketing arm said its Q4 earnings nearly tripled (+183%) year-on-year to RM261.49mil.

The retail segment’s operating profit advanced to RM237.9mil during the quarter from RM36.1mil a year earlier, driven by improved margins from motor vehicle gas sales, while operating profit of the commercial segment gained 20% to RM104.7mil.

Revenue for the quarter under review was flat at RM6.01bil. The marginal RM11.4mil drop against the same quarter in 2015 was due to a 5% retreat in average selling price.

For the whole year, PetDag posted earnings of RM944.61mil, up 20% on higher sales volume, despite revenue sliding 13% to RM21.79bil due to lower average selling price.

PetDag announced an interim dividend of 30 sen per share for Q4 2016 (Q4 2015: 20 sen), which translates to a payout of RM298.03mil. This raised the total dividend for the year to 70 sen per share, compared with 60 sen in 2015.

On the current financial year’s prospects, the company said the economic and business environment outlook remained uncertain.

“The group will continue to focus on inventory management, supply and distribution efficiency as well as operating expenditure optimisation to ensure the company remains resilient in the face of a challenging environment,” it said.

In a separate filing, PetDag announced the resignation of its chief financial officer Puteri Liza Elli Sukma, 44, effective March 1 due to a personal matter. Her successor is Norliwati Abdul Wahab, 41, head (finance & accounts) for Petco Trading Labuan Co Ltd.