KUALA LUMPUR: Petronas Dagangan Bhd’s (PetDag) net profit slipped 45% to RM172.75mil for the second quarter ended June 30,2019 (2Q19) from RM314.42mil due to lower retail and commercial segments’ margins as well as a decline in the Mean of Platts Singapore (MOPS) price trend.
In a filing to Bursa Malaysia yesterday, the group said the operating expenses were up in the quarter on the back of higher support services costs as well as depreciation and amortisation.
However, PetDag’s revenue was up 4.5% to RM7.60bil for the quarter compared to RM7.27bil a year ago mainly contributed by higher sales volume of 3% and increase in average selling prices of 4%.
Its earnings per share for the quarter was 17.40sen from 31.60sen a year ago. The group declared a dividend of 14sen for the 2Q19.
Going forward, PetDag pointed out that the volatility of oil price, economic condition and consumers’ sentiment would have an impact on the group’s profitability.
“The group will continue to focus on inventory management, supply and distribution efficiency as well as operating expenditure optimisation to ensure it remains resilient, ” it added.
Meanwhile, the oil and has group expects the retail sector to be challenging due to increasing numbers of energy efficient vehicles and the rise in usage of public transportation and e-hailing services.
“Retail segment will continue to leverage the newly launched superior products mainly Petronas Primax 95 with Pro-Drive, Petronas Syntium 7000, Petronas Syntium 7000 Hybrid and Petronas Syntium 3000, ” it said.
Besides that, PetDag noted that the retail segment would focus on strengthening dealership and network management as well as enhancing customer experience via its digital initiatives such as Setel, an e-payment solution.
“Retail plans to increase its profitability by pursuing strategic partnerships to enhance product offerings, ” it added.
Moreover, PetDag’s commercial segment including its bulk Liquefied Petroleum Gas sales would maximise on value through effective sales strategies, leveraging its superior logistics, personalised services and differentiated offerings to sustain its existing markets and capture new markets.
Did you find this article insightful?