PETRONAS Dagangan net profit jumps to RM943.07mil in FY23

KUALA LUMPUR: Petronas Dagangan Bhd (PDB) saw its net profit jump to RM943.07 million in the financial year ended Dec 31, 2023 (FY2023) from RM776.59 million on the back of higher gross profit from all segments and interest income.

In a filing with Bursa Malaysia today, PDB said revenue expanded to RM37.54 billion from RM36.74 billion driven by an eight per cent sales volume growth despite a six per cent drop in average selling price.

Net profit for the last quarter under review rose to RM180.81 million from RM144.45 million while revenue improved to RM10.07 billion from RM9.49 billion, the retailer and marketer of downstream petroleum products said.

"While expecting crude oil prices to be about US$80 per barrel throughout 2024, the group remains vigilant in monitoring market fluctuation and adjusting strategies for sustained profitability in a dynamic market,” the filing said.

PDB also said it views the impending regulatory changes in 2024, primarily the targeted subsidy programme, as "presenting both challenges and opportunities” to the group’s fuel business.

Breaking down the performance of its business segments, it said revenue from its retail segment for the year rose by RM1.46 billion, contributed mainly by a higher sales volume of eight per cent in tandem with higher demand.

Profit before tax (PBT) for the segment for FY2023 stood at RM792.8 million, an increase of RM33.8 million against last year, contributed by higher gross profit from mogas and diesel in line with higher volume sold.

The impact was nevertheless offset by a rise in volume-related operating expenditures and lower other income following the once-off liquefied petroleum gas (LPG) Sarawak business disposal gain recorded last year.

Over in the commercial segment, revenue fell by RM695.9 million following an 11 per cent lower average selling price despite a higher nine per cent sales volume.

PBT for the year was recorded at RM516.5 million, a RM167.5 million rise against last year, contributed by a higher gross profit from Jet A1 resulting and increased volume, as well as interest income.

As for its convenience business segment, revenue was recorded at RM251 million, up RM30.1 million due to higher demand for Kedai Mesra and Café Mesra offerings. PBT for its convenience segment rose to RM27.2 million, due to higher gross profit. - Bernama