KUALA LUMPUR: Higher fuel prices boosted petrol pump operator Petronas Dagangan Bhd's earnings in the first quarter, but demand was impacted by travel restrictions to curb the spread of the Covid-19 pandemic.
The company posted a net profit of RM191mil, or 19.2 sen share in the three-month ended March 31 compared with a loss of RM29.4mil a year ago when the pandemic first hit the country.
Revenue, however, declined RM5.1bil from RM6.55bil previously.
PetDag has declared an interim dividend of 14 sen a share.
"The on-going pandemic remains a key risk to the group," it said in a filing with Bursa Malaysia today.
It said the re-implementation of travel restrictions at home is expected to impact fuel demand in the coming months.
To mitigate the impact, PetDag said the company will continue to develop its non-fuel business.
On the commercial side, PetDag said the impact of the current movement control order (MCO) to the manufacturing and industrial sectors were less severe compared with the first MCO that was implemented early last year.
But demand in the aviation sector remained slow, as it was largely restricted to domestic flights and cargo operations.
While PetDag said that the demand outlook is difficult to predict, the rising prices of crude oil offer a positive outlook for the business.