Petronas Dagangan Berhad records lower net profit

Malaysia's iconic Twin Towers are seen in the background of the Malaysian oil and gas company Petronas logo at a petrol station in Kuala Lumpur on August 13, 2014. Malaysian state energy firm Petronas is expected to announce its second quarter earnings later on August 13. AFP PHOTO / MANAN VATSYAYANA / AFP / MANAN VATSYAYANA

For the quarter ended 30 June 2020, Petronas Dagangan Berhad (PDB) recorded a Profit Before Tax (PBT) of RM1.2 million as compared to the preceding quarter, where PDB recorded a Loss Before Tax of RM18.4 million.

The improvement was a result of stronger demand as activities picked up since the implementation of Conditional Movement Control Order (CMCO) in May 2020. Sales volume for June 2020 has already surpassed April’s sales volume by over 50 percent.

Comparing against the corresponding quarter last year, the Company’s PBT is lower by RM236.4 million as the Covid-19 pandemic and implementation of Movement Control Order (MCO) in March 2020 has impacted demand significantly. Overall, revenue stood at RM2,931.8 million, 61 percent lower than the corresponding quarter last year.

Commenting on the Company’s performance, PDB’s Managing Director and Chief Executive Officer, Azrul Osman Rani said, “Overall, April was the most challenging month in view of the Covid-19 pandemic coupled with the declining petroleum product prices. However, following the ease of restrictions by the Government from May onwards, our business has seen a sharp improvement as compared to April. Nevertheless, we are cautious that the Aviation sector may take longer to recover and this will continue to impact our Jet A1 sales volume.”

“In withstanding this challenging period, PDB has focused on prudent cash management, effective risk mitigation and ensuring our ecosystem remained robust. We will continue to leverage on our strong foundation for a rebound, while prioritising the safety of our customers, employees and business partners,” he added.

Throughout the MCO period, Setel was recognised as a preferred payment solution to minimise physical interactions while refuelling at over 700 Setel-enabled PETRONAS stations nationwide. As of the quarter ended June 30, Setel has over 1.3 million users, an increase of 21 percent from when MCO was first declared by the Government.

PDB continues to enhance its customer experience through expansion of its product offerings, including food and beverage items, enhancement of the Setel mobile application’s features, as well as the introduction of new and exciting promotions.

PDB will also focus on its unique proposition of the Petronas AutoExpert, a full-fledged automotive service center that offers top-end products and quality services, to grow its Lubricant business and capture new customers. In addition, the Lubricant business had recently secured a 5-year contract with Mazda to supply mainly Syntium branded lubricants.

For the Commercial business, PDB is committed to deliver superior value proposition through comprehensive product offerings to sustain existing and capture new markets. For LPG business, the Company will leverage on its extensive logistics and distribution network to cater for the increased demand of the household segment, as more people opt to cook at home.

PDB has declared an interim dividend of 5 sen per ordinary share for the quarter ended June 30.

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