KUALA LUMPUR: Petronas Dagangan Bhd
reported a decline in first-quarter net profit, weighed down by higher expenditure and an increase in product prices in the commercial segment resulting from steep oil price hikes.
In a stock exchange filing, the oil and gas merchant said net profit in the quarter ended March 31, 2026, was down to RM283mil from RM293.5mil in the year-ago quarter. This was despite an increase in quarterly revenue to RM11.15bil from RM9.09bil previously due to better average selling prices and sales volume.
"Geopolitical tensions in the Middle East remain elevated, with the uncertain trajectory of the conflict reinforcing the need to remain cautious, given the potential disruption to global energy supplies and supply chains," it said in the commentary accompanying the results.
According to the group, the average price of Brent crude in 1Q stood at US$81.13 a barrel, which was 27.3% higher than in the preceding quarter due to the tensions in the Middle East.
The commercial segment was the most negatively impacted by the price increase, registering an 87% slump in pre-tax profit to RM22.5mil due to lower gross profit arising from less favourable Mean of Platts Singapore (MOPS) price trend for Jet A1 aviation fuel.
Conversely, the retail segment recorded a 69% increase in pre-tax profit to RM324.5mil, mainly contributed by higher gross profit arising from upward movement in MOPS prices,
supported by stronger demand from Mogas and diesel.
Meanwhile, the group's convenience segment reported a marginally higher pre-tax profit of RM36mil, mainly owing to improved merchandise gross profit.
The board of directors declared an interim dividend of 18 sen per share, with entitlement date on June 16, 2026, and payment on June 26, 2026.
