Petronas Dagangan's Q1 pre-tax profit declines to RM223 mln

by **Cals** Wed 07 May 2014, 01:40

Business & Markets 2014

Written by Bernama

Tuesday, 06 May 2014 19:59

KUALA LUMPUR (May 6): Petronas Dagangan Bhd's pre-tax profit for the first quarter ended March 31, 2014, declined to RM223.13 million, from the
RM326.96 million recorded in the same period last year.

Revenue, however, rose to RM8.29 billion, from RM7.61 billion previously, resulting from an increase in average selling prices and sales volume by 7.2 per cent and 1.3 per cent respectively, it said in a filing to Bursa Malaysia today.

Petronas Dagangan said that retail segment revenue increased by RM480.3 million, due mainly to the higher selling price of subsidised mogas and diesel, as announced by the Malaysian government on September 3 last year.

It said, the segment revenue was further supported by an increase in sales volume, particularly for diesel by 10.5 per cent, arising from additional quota approved by the Ministry Of Domestic Trade, Cooperatives and Consumerism during the quarter.

It added that the commercial segment revenue also increased by RM193.2 million, on the back of a higher average selling price by 5.7 per cent, despite a slight dip in sales volume of 1.1 per cent.

On prospects, it said that Petronas Dagangan is committed to defending its overall market leadership position and grow the company's business domestically, through the strengthening of its brand, sweating existing assets and continuously enhancing customer relationship management.

The company will also continue its cost optimisation efforts, via enhancement of supply and distribution efficiency and improvement of terminal
operational excellence, to further improve the cost of operations.

It said, the retail segment is expected to maintain its margin contribution, mainly from the sales of subsidised petroleum products, by leveraging on the extensive station and dealer network, differentiated products and service offerings, to continue to meet and exceed customers' expectations.

Meanwhile, Petronas Dagangan said that the commercial segment is expected to maintain its financial performance by leveraging on the customer base, in tandem with an increase in government and private sector spending on infrastructure projects.

"The current product mix will be an advantage, as it allows the segment to capitalise on opportunities arising from the volatility of petroleum product prices," it added.

Petronas Dagangan said that the segment will also leverage on its superior logistics, personalised services and differentiated offerings, to defend the current market leadership.