Petronas Dagangan’s net profit triples in Q3 on RM430.8 million disposal gain

PETALING JAYA: Petronas Dagangan Bhd's net profit for the third quarter ended Sept 30, 2017 more than tripled to RM761.73 million from RM248.76 million a year ago, thanks to a disposal gain of RM430.8 million.

During the quarter, the group disposed of 100% equity interest in a subsidiary Petronas Energy Philippines, Inc and 40% equity interest in an associated company Duta Inc to P-H-O-E-N-I-X Petroleum Philippines, Inc for RM560.5 million, resulting in a gain on disposal of RM424.6 million.

Thang Long LPG Company Ltd was also sold to Noi Thuong Bac Joint Stock Company for RM18.5 million, resulting in a gain of disposal of RM6.2 million.

Petronas Dagangan's revenue for the quarter rose 22.15% to RM6.69 billion from RM5.48 billion a year ago due to higher sales volume by 3% and an increase in average selling price by 18% following the increase in Mean of Platts Singapore (MOPS) prices.

The group declared an interim dividend of 20 sen per share amounting to RM198.69 million for the quarter under review.

For the nine months ended Sept 30, 2017, its net profit rose 84.58% to RM1.26 billion from RM683.12 million a year ago while revenue rose 26.58% to RM19.74 billion from RM15.60 billion.

The group expects the business environment for the upcoming months to remain challenging and will continue to focus on inventory management, supply and distribution efficiency as well as operating expenditure optimisation to ensure it remains resilient.

Its share price rose 0.75% or 16 sen to close at RM21.60 on Friday with a total of 788,300 shares traded, giving it a market capitalisation of RM21.46 billion.