PETALING JAYA: Petronas Dagangan Bhd (PetDag) saw its net profit increasing 15.4% to RM253.2mil for its first quarter ended March 31 from RM219.4mil in the previous corresponding quarter on improved margins.
In its filing with Bursa Malaysia, the oil and gas product retailer and marketer said its retail segment reported a higher operating profit, thanks to improved margins from liquefied petroleum gas as a result of competitive product cost and improved Mogas – the natural gas used by vehicles – margins as a result of higher prices. The group’s commercial segment, on the other hand, reported a marginal decline in operating profit due to higher operating expenditure (opex) and lower other income.
During the quarter under review, PetDag’s revenue grew 36.2% to RM6.69bil from RM4.91bil in the previous corresponding quarter, while its earnings per share increased to 25.5 sen from 22.1 sen previously.
PetDag attributed its revenue growth to the increase in the average selling prices of oil products by 43%, following the increase in the Mean of Platts Singapore prices, which offset the impact of the lower sales volume.
In line with its improved performance, PetDag has proposed a first interim dividend of 14 sen.
Meanwhile, the company said the economic and business environment outlook for the remaining part of its financial year ending Dec 31, 2017 is expected to remain uncertain. It said oil prices are expected to continue being volatile throughout the year.
For the quarter under review, Brent crude oil prices ranged between US$49.20 (RM213) and US$56.30 per barrel. In the face of a challenging environment, PetDag said it would continue to focus on inventory management and supply and distribution efficiency as well as opex optimisation.