Petronas: 2H outlook difficult to predict

KUALA LUMPUR: Petronas Dagangan Bhd’s (PDB) outlook for the second half of the year remains uncertain but the company said it has the right strategies in place to weather the volatile market.
Managing director and CEO Mohd Ibrahimnuddin Mohd Yunus said how things pan out would depend on the sentiments of the market.
“Nobody can predict where crude oil prices is going and it’s difficult in the present scenario. One day you see it at US$40 per barrel, one day you can see it below US$40,” he told reporters after the launch of the Kad Mesra Angkasa on Friday.
PDB is retaining last year’s strategy of optimal inventory management, cost optimisation as well as efficient supply and distribution this year, in light of the volatile oil prices.
“Those strategies that we implemented in 2015 are still relevant for 2016. The market has not changed much in terms of oil prices. It’s still volatile. It’s going up a bit, going down a bit. We don’t know where it is going, therefore the strategies remain for 2016.
“With the right strategies, the company will perform well. With the right products in the market, consumers will be happy and we hope they will come to our stations and use our products,” Ibrahimnuddin said.
PDB is the principal domestic marketing arm of Petroliam Nasional Bhd (Petronas). The company markets a range of petroleum products including motor gasoline, aviation fuel, kerosene, diesel, fuel oil, bunker fuel, lubricants, liquefied petroleum gas and asphalt in Malaysia.
It is looking at opening seven to 10 petrol stations in Malaysia this year, from 15 to 17 stations last year.
Earlier, Ibrahimnuddin launched Kad Mesra Angkasa, the first co-branded loyalty card by Petronas and Angkatan Koperasi Kebangsaan Malaysia Bhd (Angkasa).

The collaboration with Angkasa, which has eight million co-operative members, has opened up opportunities to reach out to members registered under the individual co-operatives with the body. The partnership also provides a platform for co-operatives registered with Angkasa to highlight their businesses and promotions to Kad Mesra Angkasa holders, which is among PDB’s efforts to support and promote locally-made products and services through its retail business.
The co-branded loyalty card will enable members to collect and redeem points at any Petronas station similar to the normal Kad Mesra with added benefits and privileges exclusive for Angkasa members.