Petronas Dagangan Berhad Registers 27% Increase in Profit for Q2 FY2017

1438

Kuala Lumpur, 24 August 2017 – PETRONAS Dagangan Berhad (PDB) registered profit before tax of RM317.2 million for the second quarter of the year, a 27% increase compared to the corresponding quarter last year of RM 249.7 million. The increase is attributable to higher gross profit and other income, as well as lower operating expenditure.

Revenue for the quarter ended 30 June 2017 was RM6,505.3 million, a 22% increase compared to the corresponding period last year. The result was achieved due to a 28% higher selling price, following higher average Mean of Platts Singapore prices.

Group earnings per share for the quarter rose to 24.8 sen from 21.6 sen during the second quarter of 2016.

For the second quarter ended 30 June 2017, PDB has declared a dividend of 14 sen per ordinary share.

Retail business recorded a 13% increase in gross profit compared to the same quarter last year, mainly contributed by higher gross profit from diesel following subsidy impairment of RM89.9 million in the corresponding quarter.

Commercial business continued on an upward trend, registering 14% increase in gross profit, on the back of improved volumes in aviation fuel, mainly contributed by newly secured contracts and increased flight frequencies by several airlines.

LPG recorded an 11% decrease in gross profit compared to the corresponding quarter due to aggressive competition within the industry.

For lubricant business, gross profit decreased by 22% as compared to the corresponding quarter, attributable to higher product cost.

During the quarter under review, PDB completed the divestment of its equity investment in its Vietnam business, Thang Long LPG Company Limited (TLLCL) to Noi Thuong Bac Joint Stock Company (NTB). As a result, TLLCL is no longer a subsidiary of PDB and is not consolidated within PDB Group with effect from 12 June 2017.

PDB Managing Director and Chief Executive Officer Dato’ Mohd Ibrahimnuddin Mohd Yunus said, “We are pleased that despite a challenging market environment, PDB remained resilient in sustaining our good performance. Moving forward, for Retail business, our focus will remain on enhancing customer experience through superior products and services. We will also continue to seek strategic partnership opportunities to provide added convenience to our customers. For Commercial business, we will emphasise on value maximisation by improving margins in targeted products and market segments. For LPG business, efforts will be invested into defending our market leadership while for Lubricant business, we will focus on growing higher margin products.”

“As part of the company-wide efforts, PDB will continue to concentrate on inventory management, supply and distribution efficiency as well as operating expenditure optimisation. We will also leverage on digital solutions to create greater customers experience in line with our customers’ evolving lifestyle” Dato’ Ibrahimnuddin Yunus concluded.