KUALA LUMPUR: Petronas Dagangan Bhd (PetDag) aims to have its non-fuel businesses contributing 30% of earnings before interest, taxes, depreciation, and amortisation (ebitda) by 2025.
The group’s chairman Datuk Md Arif Mahmood said the group was looking at ways to leverage on its more than 1,000 petrol stations nationwide and new offerings for customers.
“This is work in progress - some of it (offerings) will probably launch this or next year. In the next three to four years, we should see them contribute to the level of ebitda (targetted), ” he said at a online media briefing after the group’s virtual 39th annual general meeting.
Regarding the drop in the group’s commercial business, PetDag managing director and CEO Azrul Osman Rani explained that a sizable portion of 2019’s revenue for the commercial business was in the aviation industry.
“In 2020, we saw a 65% drop in demand. The aviation industry is still recovering. I think there’s still a long way to go for them. For aviation in particular, we have the lion’s share of the market historically, so when the industry is affected, our volumes go down as well. Hopefully, as Covid-19 vaccinations are being rolled out, we should be able to regain back the volumes in no time, ” said Azrul.
In a statement, Azrul also pointed out that as part of future-proofing PetDag, the group has exciting plans in the pipeline that will help it identify new revenue streams as well as deliver on its brand promise.
A key area is the development of local entrepreneurs, especially the small and medium enterprises (SME) vendors registered with PetDag.
Plans are also underway to facilitate the adoption of sustainable energy at its retail stations and more environmental-friendly packaging materials.
“The need to future-proof our business is even more necessary now amidst the evolving energy industry and the rise in the e-commerce sector, ” said Azrul.
The group noted that in 2020, its retail business also capitalised on food-to-go solutions by introducing Makan@Mesra, gradually expanding its menu based on customer demand.
In addition, it digitalised the Mesra Redemption Portal and integrated it with the Setel app, making redemption more convenient for customers.
Meanwhile, the group also diversified its product portfolio to include the marketing of liquefied natural gas (LNG) as a cleaner fuel option.
PetDag, through Petronas Group’s virtual pipeline system (VPS), is now the first in Malaysia to supply LNG via road tankers to off-grid customers.
Additionally, it is marketing LNG to the marine industry via Petronas’ first LNG bunkering vessel (LBV) MV Avenir Advantage, which allows for ship-to-ship transfer – the first in South-East Asia to offer such a solution.
PetDag is also leveraging its digital ventures including Setel, Malaysia’s first e-payment solution that enables fuel purchases directly from mobile devices, as well as ROVR, Malaysia’s first mobile refueling service for commercial customers, and PRYSM, its newly launched merchandise brand.
PRYSM was launched in 2020 in response to the demand for Petronas-branded merchandise.
Available online and at Petronas stations, PRYSM which features over 60 products, registered sales of RM8mil in 2020.