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KUALA LUMPUR, Feb 19 -- Petronas Dagangan Bhd (PDB) posted a lower net profit of RM276 million in its financial year ended Dec 31, 2020 (FY20) compared to RM829.54 million a year earlier as it was affected by external challenges including the sharp decline in petroleum product prices at the start of the year and the ensuing COVID-19-related movement restrictions.
Revenue for FY20 fell to RM18.71 billion from RM30.29 billion year-on-year primarily impacted by lower sales volume and a decrease in average selling prices.
The company said it recorded gradual recovery in the third quarter of 2020 but the re-implementation of the conditional movement control order in the fourth quarter (4Q20) had affected PDB’s growth trajectory.
For 4Q20, PDB registered a net profit of RM89.21 million against RM126.59 million, while revenue stood at RM4.39 billion from RM7.79 billion year-on-year.
“Though 2020 had been challenging, it was an enabler for innovation. We have accelerated our plans to diversify our product portfolio and digitalise our operations as part of our efforts in future-proofing the business,” said managing director/chief executive officer Azrul Osman Rani in a statement today.
He added that PDB expected the current re-tightening of movement control order restrictions to be a temporary challenge especially in the first quarter of 2021.
“As such, our efforts in creating new opportunities to meet customers’ changing needs will be key to our business growth and development,” said Azrul.
In meeting customers’ changing purchase and consumption behaviour, PDB has accelerated the expansion of its food and beverage offerings to include more ready-to-eat meals via its Makan@Mesra initiative.
Part of PDB’s non-fuel growth strategy, Makan@Mesra offers an array of fresh and well-balanced premium food at affordable prices to address the increasing demand for food-to-go solutions.
To date, there are nine Petronas stations that offer Makan@Mesra and the company plans to expand to 200 stations by the end of 2021, said PDB.
PDB also recently launched Segar@Mesra at four of its stations, offering locally farmed produce; poultry, fish, vegetables and fruits at affordable prices.
It said the initiative allows the surrounding community a more convenient option to stock up on daily cooking needs as well as the added benefit of connecting local farmers to customers and communities.
PDB’s share price closed two sen higher to RM19.20 on Bursa Malaysia today.