MIRI: PETRONAS Dagangan Berhad (PDB) delivered strong earnings for the third quarter of 2017 contributed by higher sales volume, improved margins as well as gained disposal of its subsidiary. Profit after Tax (PAT) including discontinued operations was RM762.5 million, which is more than 100 per cent against corresponding quarter last year. PAT from continuing operations was RM334.6 million, 37 per cent higher than corresponding quarter last year.
Speaking about the Company’s performance, PDB Managing Director and Chief Executive Officer Dato’ Mohd Ibrahimnuddin Mohd Yunus said, revenue for the quarter rose by 22 per cent to RM6,694 million from RM5,480.2 million driven by three percent increase in sales volume and an 18 percent increase in average selling price, in tandem with higher average Mean of Platts Singapore prices.
“We are pleased to record a stronger performance this quarter, amidst the challenging market environment and stiff competition. We intensified our sales and marketing campaigns and expanded into digital marketing and these efforts have proven to yield positive results for us in terms of gross profit and sales volume,” he said in a press statement.
“Group earnings per share, excluding gain on disposal of subsidiary, for the quarter rose to 33.6 sen from 24.4 sen recorded in the corresponding quarter last year. PDB has declared a dividend of 20 sen per ordinary share,” he added.
He disclosed, in comparison to last year’s performance for the corresponding quarter, retail business recorded a 35 percent increase in gross profit following upward trend in product prices, while Commercial business registered a 17 percent increase in gross profit, contributed by higher volumes in aviation fuel and diesel.
Meanwhile, LPG business recorded a 46 percent increase in gross profit in line with a five percent increase in volume following the implementation of new incentive programmes implemented by the Company to drive higher sales amidst a competitive landscape. Lubricant business’ gross profit decreased by five percent due to lower volume and higher product costs.
During the quarter, PDB disposed 100 per cent of its equity interest in PETRONAS Energy Philippines Inc (PEPI) and 40 per cent equity interest in an associated company, Duta Inc. to P-H-O-E-N-IX Petroleum Philippines Inc. resulting in gain on disposal of RM424.6 million.
With effect from 14 August 2017, PEPI is no longer a subsidiary of PDB and is not consolidated within the PDB Group. “In the next quarter, PDB will ramp up efforts to drive volume growth while ensuring the efficiency of our inventory management, supply and distribution, as well as operating expenditure optimisation.” he said.
Moving forward, retail business will further strengthen its network and continue to grow in the e-commerce segment, leveraging on the existing partnership with e-retailers such as Shopee, Lazada Malaysia and 11street to diversify its pointof- sales and enhance customer experience.
Commercial and LPG business will focus on maintaining its market leadership position while efforts will be focused on growing the higher margin products for lubricant business.
