KUALA LUMPUR, Nov 4 – Petronas Dagangan Bhd registered a pre-tax profit of RM223.6 million for the third quarter ended Sept 30, 2014, a decrease of RM92.1 million from RM315.7 million in the corresponding quarter last year. In a statement today, Petronas Dagangan said the reduction of pre-tax profit was due to unfavourable Means of Platts Singapore (MOPS) price movement and the challenging market environment.
Revenue for the period under review was RM8.226 billion, a marginal decrease of two per cent amounting to RM185.4 million compared with RM8.412 billion in the corresponding quarter last year. Petronas Dagangan Managing Director and Chief Executive Officer Mohd Ibrahimnuddin Mohd Yunus said the challenging and volatile external market environment, particularly the unfavourable MOPS price movement and decrease in sales volume for diesel, had affected Petronas Dagangan’s performance in the third quarter.
Earnings per share for the quarter under review was 16.1 sen, a decrease of 6.7 sen compared with 22.8 sen for the year before. Petronas Dagangan said the retail segment had been affected by lower diesel sales volume due to stricter controls imposed on diesel sales despite the higher sales volume contribution from mogas.
However, the retail business has continued to pursue other growth opportunities by offering enhanced convenience to its customers via its one-stop-convenience centre. On prospects, Ibrahimnuddin said Petronas Dagangan’s was constantly looking at growth opportunities within its businesses to enable Petronas Dagangan to further strengthen its overall market leadership position.
The over 700 Kedai Mesra have achieved robust growth in hospitality income, complementing the offerings at over 1,000 Petronas stations throughout the country. Ibrahimnuddin said Petronas was committed to delivering value to its customers, especially in product quality and innovation. For example, motorists are now enjoying the new Petronas Primax 95 with Advanced Energy Formula and Petronas Syntium 7000 as a result of long-term investments made by Petronas.
On commercial segment, the overall sales volume registered a decrease of seven per cent and Petronas Dagangan has increased its gross profit for the segment – thanks to its focus on value growth. Petronas Dagangan said the commercial segment would continue to pursue high-value and high-margin segments to drive profitability.
Petronas Dagangan will take it as a challenge to push harder and seize market opportunities to become a clear brand of first choice in the retail industry, he added. Petronas Dagangan Bhd is the principal domestic marketing arm of Petronas, the national oil company, which holds 69.86 per cent of its equity.