PETRONAS DAGANGAN Q2 PROFIT UP 30 PCT TO RM322.53 MILLION

KUALA LUMPUR, Aug 20 (Bernama) – Petronas Dagangan Bhd’s net profit jumped 30 per cent to RM322.53 million for the second quarter ended June 30, 2018 as compared with RM247.78 million in the same period last year.

The better performance was due to higher margin as well as lower product and freight costs, although it was partially offset by higher advertising and promotion expenses.

In a filing to Bursa Malaysia, it said revenue for the quarter stood at RM7.28 billion, an increase of 10 per cent or RM661.6 million, as a result of increase in average selling price by 10 per cent.

“As compared to the corresponding quarter last year, Retail business recorded a 25.5 per cent increase in gross profit in line with the uptrend of Mean of Platts Singapore prices as well as lower product cost and freight charges,” said Petronas Dagangan.

Comparing with the quarter ended March 31, 2018, Retail business registered a 4.0 per cent increase in sales volume, higher than market average.

Against the corresponding quarter last year, liquefied petroleum gas (LPG) business also maintained growth in both gross profit and volume at 3.3 per cent and 0.5 per cent respectively, further cementing its market leadership position.

For the same period, it said Commercial business registered a marginal decrease of 0.5 per cent in gross profit, due to higher purchase price and lower sales volume for Jet-A1, following usage of more fuel-efficient aircraft.

Amidst a highly competitive market, its Lubricant business registered a 15.2 per cent growth in gross profit while volume increased by 2.7 per cent, following enhanced product mix and more competitive pricing.

"Moving forward, the company will continue with efforts to defend our market leadership position in both Commercial and LPG segment.

“For Retail business, we are focused on innovating our strategies to reinvent the fuel retailing business through smarter collaborations and digital transformation in delivering superior customer experience. We will also be focusing on growing our non-fuel business,” Petronas Dagangan said.

-- BERNAMA