Petronas Dagangan Q3 net profit up 13.7%

PETALING JAYA: Petronas Dagangan Bhd’s (PDB) net profit in the third quarter ended Sept 30, 2016 (Q3FY16) rose 13.7% to RM248.76 million, from RM218.88 million in the previous corresponding quarter.

Revenue reduced 14.9% to RM5.5 billion, compared with RM6.5 billion a year ago, mainly as a result of a decrease in average selling price, coupled with lower sales volume.

In a filing with Bursa Malaysia yesterday, PDB said the decrease in average selling price was due to the decrease in Mean of Platts Singapore (MOPS) prices.

However, PDB said the group’s operating profit for the quarter had increased RM26.9 million to RM329.6 million, compared with the corresponding quarter last year, mainly attributable to its retail segment.

PDB said despite a lower volume recorded for its commercial segment, operating profit increased by RM14.6 million, mainly due to higher margins from aviation and fuel oil, as well as higher other income.

On prospects, PDB said its directors expect the economic and business environment outlook for FY16 to remain challenging.

“Oil price (dated Brent) increase slightly quarter-on-quarter from US$45.6/bbl (Q2FY16) to US$45.9/bbl (Q3FY16). The oversupply situation in the global market is expected to remain, at least through the first half of 2017 resulting in continued price volatility,” it noted.

The group said it will continue to focus on inventory management, supply and distribution efficiency as well as operating expenditure optimisation to ensure it remains resilient in the face of a challenging environment.

For the nine months, PDB’s net profit fell 2.1% to RM683.12 million, from RM697.86 million in the same period last year, while revenue decreased 17.13% to RM15.78 billion, against RM19.04 billion previously.