Petronas Dagangan sees lower third quarter PBT but retail business grows

KUCHING: Petronas Dagangan Bhd (PDB) registered a revenue of RM 7,819.3 million for the quarter ended 30 September 2018, an increase of 14 per cent as compared to the corresponding quarter last year due to higher market price.

Profit before tax (PBT) decreased by 11 per cent to RM391.5 million mainly due to lower sales volume and higher operating expenses.

Overall for the six-month period ended September 30, 2018, PDB recordedfourpercentgrowthinPBT as compared to the corresponding period last year.

Retail business recorded an increase of 2.3 per cent in sales volume and 5.5 per cent in gross profit, a testament to its impactful marketing campaigns and enhanced customer experience, Lubricant business registered a 4.4 per cent increase in sales volume and boosted its gross profit by 8.4 per cent.

Commercial business recorded a decline in both sales volume and gross profit by 8.5 and six per cents respectively due to lower demand for diesel and Jet A-1. LPG business recorded marginal decline in its sales volume by 1.8 per cent while its overall gross profit decreased by 30.7 per cent due to higher product cost.

PDB declared a dividend of 16 sen per ordinary share for the third quarter ended 30 September 2018.

PDB’s managing director and chief executive officer, Datuk Sri Syed Zainal Abidin said, “This year is all about reinventing our business, especiallyforretail, where investment is necessary to create a superior customer experience through innovative solutions and strategic partnerships that will help grow both our fuel and nonfuel businesses.

“The company is also focusing on its digital transformation agenda to enhance operational efficiency to ensure business remains resilient and competitive.”

“Going into the next quarter, the company is cautious that the continued volatility of oil price, coupled with Malaysia’s economic environment and consumer sentiment, will have an impact on the group’s profitability.