Petronas Dagangan Q4 net profit up nearly threefold

PETALING JAYA: Petronas Dagangan Bhd’s (PDB) net profit in the fourth quarter ended Dec 31, 2016 (FY16) jumped almost threefold to RM261.49 million, from RM92.11 million in the previous corresponding quarter, attributed to both retail and commercial segments.

In a filing with Bursa Malaysia yesterday, PDB said its operating profit in retail segment saw an increase of RM201.8 million, mainly due to improved margins, in line with the increasing MOPS (Mean of Platts Singapore) price trend during the quarter and higher volume.

Operating profit from commercial segment increased by RM17.1 million mainly due to improved margins from aviation as well as higher volume.

Revenue for the quarter stood at RM6 billion, which was slightly lower by RM11.4 million than in the corresponding quarter last year, as a result of a fall in average selling price by 5%.

For the full year, PDB’s net profit grew 19.6% to RM944.6 million, from RM789.97 million a year ago, while revenue fell 13% to RM21.79 billion, from RM25 billion previously.

On prospects, PDB said its directors expect the economic and business environment in FY17 to remain uncertain.

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

In the retail segment, PDB said it will focus on enhancing customer experience and services, leveraging on superior products, namely Primax 95 with Advanced Energy Formula, Primax 97 Euro 4M with Advanced Energy Formula and Dynamic Diesel, and non-fuel offerings.

In the commercial segment, the group said it will emphasise value maximisation by improving margins in targeted product and market segments, leveraging on public and private sector investments in infrastructure and construction projects.

“In addition, the commercial segment will also leverage on its superior logistics, personalised services and differentiated offerings to sustain existing markets and capture new ones,” it added.