Petronas Dagangan results improve in Q4

PETALING JAYA: Petronas Dagangan Bhd‘s net profit for the fourth quarter ended Dec 31, 2017, grew by 6.53% to RM278.57 million from the RM261.49 million reported in the previous year’s corresponding period.
A slight increase (1%) in sales volume coupled with a 17% increase in average selling price following the increase in Mean of Platts Singapore price drove the group’s revenue up by 17.8% to RM6.99 billion from RM5.93 billion in the same quarter last year.
“Average crude oil price (Brent) increased from US$61.44per barrel in Q3 2017 to US$68.54/bbl in Q4 2017. Full year Brent price averaged at US$54.27/bbl. The group expects the price to continue to be volatile,” the group’s board of directors said on its prospects.
“The volatility of oil price, economic growth and consumers’ sentiment will have impact on the group’s profitability. The group will continue to focus on inventory management, supply and distribution efficiency as well as operating expenditure optimisation to ensure it remains resilient,” it added.
Meanwhile, its full-year net profit rose 68.69% to RM1.59 billion from RM944.60 million. Revenue on the other hand, grew to RM26.73 billion from RM21.53 billion.
The group declared an interim dividend of 27 sen per ordinary share and a special dividend of 22 sen per ordinary share for the three months ended Dec 31, 2017 which will be paid on March 27, 2018.
The stock gained 0.63% to close at RM25.70 with some 1.08million shares done.