KUALA LUMPUR: Petrol station operator Petronas Dagangan Bhd made a loss in the in the quarter ended March 31 (Q1 2020) due to the lower selling prices of petrol and diesel.
Sales volume also fell as the movement control order (MCO) that started on March 18 forced drivers to stay at home, while its commercial division suffered as businesses closed their operations to curb the spread of the novel coronavirus (Covid-19).
Petronas Dagangan, in a filing with Bursa Malaysia today, posted a net loss of RM29.4mil in the the three months ended March 31.
Revenue declined 16% to RM6.55bil.
The company has declared an interim dividend payout of 5 sen a share, down from 15 sen a share paid in the same quarter last year.
"The group results in Q1 2020 has been impacted by declining petroleum product prices following volatility of crude oil prices," Petronas Dagangan said.
The company said the average price of Brent crude in Q1 was US$50.26 a barrel, down from US$63.32 a barrel in the previous quarter.
The average price in March was US$31.83 a barrel, the lowest monthly average in five years.
Petronas Dagangan said the Q1 performance showed the early impact of Covid-19 pandemic on its operations.
The prolonged MCO, it said, will "severely impact" its retail business in Q2, but expected to gradually recover for the remainder of the year.
On its commercial segment, the group said demand from the aviation sector remains uncertain.
However, a recovery projected in other sectors is expected to cushion the impact.
"The impact on overall commercial segment performance in Q2 remains nweak and challenging," it said.
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