KUALA LUMPUR: Petronas Dagangan Bhd (PDB) revenue for the second quarter (2Q) increased by 5 per cent to RM7.60 billion despite lower average selling price.
The lower selling price is in tandem with declining Mean of Platts Singapore (MOPS) price trend as compared to the corresponding quarter last year.
Overall sales volume boosted by 8 per cent in 2Q ended 30 June 2019 against the corresponding quarter last year.
"Amidst a challenging market environment, we have continued to boost our overall sales volume and this is strong testament to the effectiveness of our business
strategies and the superior quality of our products.
"Mogas volume alone increased by 6 per cent quarter on quarter and this clearly reflects the confidence that our customers have for our new fuel, Petronas Primax 95 with Pro-drive, since we launched it in January this year," PDB managing director and chief executive officer Dato Sri Syed Zainal Abidin Syed Mohd Tahir said in a statement today.
"Nevertheless, we are cognisant of the impact that the continued volatility of oil price, economic condition and consumers’ sentiment will have on PDB’s overall profitability, and growing our volume will remain our key strategic focus," he added.
For 2Q, retail business’ sales volume grew by 8 per cent attributable to improved stations’ productivity, increased number of operational stations and higher
volume registered for the new Petronas Primax 95 with Pro-Drive.
Overall, PDB’s profit before tax (PBT) decreased to RM237.6 million due to lower gross profit coupled with higher operating expenditure and lower other income.
Gross profit decreased by 5 per cent mainly due to declining MOPS price trend and higher product costs during the quarter.
For the same period, commercial business registered a 9 per cent increase in sales volume mainly attributable to higher demand for Jet A1, although gross profit decreased by 9 per cent following lower margin for diesel and declining volume for fuel oil.
Liquefied petroleum gas (LPG) business’ sales volume grew by 3 per cent while gross profit declined by 11 per cent due to higher product costs.
Lubricant business’ sales volume and gross profit decreased by 15 per cent and 5 per cent respectively
following lower demand in the commercial segment amidst a competitive market landscape.
"We anticipate the market will remain challenging but we will continue to push for volume growth through leveraging our newly launched fuel and lubricants, our extensive supply and distribution chain as well as vast network of stations and partners,” Syed Zainal said.
"Over and above this, we remain committed to increase profitability by leveraging strategic partnerships to grow our non-fuel offerings.
"We will continue to increase station throughput
by providing seamless and frictionless customer experience through our digital innovation such as Setel and RoVR,” he said.
PDB has declared an interim dividend of 14 sen per ordinary share for the quarter ended 30 June 2019.