Kuala Lumpur, 27 May 2022 – For the quarter ended March 31, 2022 (Q1FY2022), PETRONAS Dagangan (PDB) registered 20% volume growth against the corresponding quarter last year, as market conditions improve under Phase Four of the National Recovery Plan (NRP).
Following higher sales volume and higher average selling prices, PDB’s revenue increased by 48% to RM7.62 billion as compared to the corresponding quarter last year.
Profit Before Tax (PBT) decreased by 37% to RM178.7 million due to higher operating expenditure in line with higher volume, as well as lower gross profit primarily from the Commercial segment, which has been impacted by steep increases in Mean Of Platts Singapore (MOPS) prices, offset by improved gross profit by the Retail segment.
PDB Managing Director and Chief Executive Officer Azrul Osman Rani says, “PDB has had a good start to the year through the increase in product demand for the first quarter. With the country now returning to normalcy, we will capitalise on the encouraging economic factors to strengthen our core businesses and deliver on our growth agenda.”
In Q1FY2022, its Retail and LPG business registered growth in volume driven by the relaxation of restrictions and improving domestic tourism. Its Commercial business recorded higher sales volume following increased demand from the manufacturing and aviation sectors fueled by full resumption of business operations and increase in international and domestic flights.
Petronas Dagangan – Lubricant
Meanwhile, PDB’s Lubricant business continued to secure new key partners leading to volume growth for its B2B segment.
It continues to offer innovative propositions in the B2C segment, leveraging its own branded automotive workshop, PETRONAS AutoExpert, as well as accelerating growth through e-commerce platforms such as Lazada and Shopee. The business aims to widen its network of PETRONAS AutoExpert from 14 to 50 outlets by end of 2022.
“We are also scaling up our non-fuel businesses as our next engines of growth. This is part of our future-proof strategies that will see us diversifying our product portfolio and revenue streams to remain sustainable and create longer term value for our shareholders,” he adds.
As part of its non-fuel growth strategy, PDB incorporated Mesra Retail & Café Sdn Bhd earlier this year to offer Mesra-branded F&B solutions and daily essential products including hand sanitizers and wet wipes, amongst others.
To-date, Five Mesra Cafés have been established in Q1FY2022. Following the expansion of its Kedai Mesra offerings, PDB has seen encouraging growth in its convenience segment as compared to the corresponding quarter last year.
PDB’s Setel Express delivery service has also registered a 10 times growth in volume, following its nationwide scale-up with the commitment of next day intra-city deliveries in three major locations namely Klang Valley, Johor and Penang.
“Moving forward, we anticipate that the opening of international borders and the lifting of restrictions in operation hours will further boost demand for all our products. While we are optimistic in maintaining our growth trajectory in this endemic phase, we remain cautious on the continued volatility of crude oil prices that could likely impact our profit and liquidity,” Azrul says.
For Q1FY2022, PDB has declared an interim dividend of 5 sen per ordinary share.