Petronas Dagangan Berhad (PDB) has recorded a Loss Before Tax of RM18.4 million for the financial period ended 31st March 2020, compared to a Profit Before Tax (PBT) of RM383 million for the same quarter last year.
This follows the sharp decline of petroleum product prices and lower demand impacted by the implementation of Movement Control Order (MCO) in the second half of March 2020,
On the back of lower average selling price by 3 percent and a 4 percent decline in sales volume primarily for Mogas, Jet A1 and Diesel, the Company’s revenue decreased by 8% to RM6,553.9 million as compared to the corresponding period in the previous year. However, PDB saw growth in its LPG household business where sales volume grew by 2 percent as well as a 20 percent growth in Kedai Mesra income.
Commenting on the Company’s performance, PDB Managing Director and Chief Executive Officer Azrul Osman Rani said, “Our performance for the first quarter was greatly affected by the plummeting petroleum product prices, and we foresee this to bottom out in the second quarter as we face the impact from the MCO.”
“However, we anticipate a better outlook in the second half of the year as we are already seeing some improvement in petroleum product prices and a slight growth in demand now, with the enforcement of CMCO. We are gearing up for the rebound when the market normalises.”
PDB remains committed to ensure operational excellence throughout its value chain and implement effective risk mitigation strategies in response to the new operating environment. The company will continue to focus on cost optimization and take decisive steps to preserve cash. This will be combined with a robust strategic investment approach to ensure long term business sustainability.
Moving forward, PDB will reinforce its financial strength for the near term by reducing non-essential spend, whilst continuing to invest in asset integrity and growth projects that are aligned to its long-term strategic priorities. This includes adding new stations, accelerating digitalisation and efforts to diversify revenue.
Azrul said, “At PDB, we are adjusting to the new normal that is reshaping the operating environment and customer behaviour. We continue to identify untapped opportunities to expand our growth, such as providing more food offerings at Kedai Mesra, and enhancing the Setel app, which is now recognised as the only refueling app in the market that helps minimise physical touch points – a clear advantage in this period of social distancing to minimise spread of the COVID-19 virus.”
“We are optimistic that with our strong fundamentals and strategic growth plans, we will be able to ride this wave and emerge stronger. Equally important for us is to ensure uninterrupted supply, safety and welfare of our staff, customers and the community”.
PDB has declared an interim dividend of 5 sen per ordinary share for the quarter ended March 31.