KUALA LUMPUR (Feb 26): Petronas Dagangan Bhd (PetDag) saw its net profit grow 6.53% to RM278.58 million for the fourth quarter ended Dec 31, 2017 (4QFY17) from RM261.49 million last year thanks to higher sales volume and increase in average selling price following the higher Mean of Platts Singapore (MOPS) prices.

Its earnings per share rose to 28 sen in 4QFY17 from 26.3 sen in 4QFY16.

The company attributed the higher earnings to both its retail and commercial segments. Its total operating profit for 4QFY17 rose about 11.72% to RM372.8 million against RM333.7 million, PetDag reported.

PetDag’s 4QFY17 revenue was also up 17.81% to RM7 billion from RM5.94 billion last year.

In separate filing with Bursa Malaysia today, the group declared an interim ordinary dividend of 27 sen per share, as well as a special interim dividend of 22 sen for the financial year ended Dec 31, 2017 (FY17). Both are payable on March 27.

For its full year of FY17, PetDag achieved another record-breaking year on the back of improved margins and gain from disposal of its subsidiaries. Its net profit was 68.69% higher at RM1.59 billion or 155 sen per share, from RM944.61 million or 95.1 sen per share last year.

Revenue for the full year was at RM26.74 billion, up 24.16% from RM21.53 million a year ago.

“We are pleased to announce yet another outstanding year amidst challenging market conditions and stiff competition. Our strong performance is a testament that the strategies and winning formula we have in place are effective and are yielding positive results,” said its managing director and chief executive officer Datuk Mohd Ibrahimnuddin Mohd Yunus, in a separate statement today.

PetDag noted that the volatility of oil price, economic growth and consumers’ sentiment will have an impact on the group’s profitability. Hence, the group will continue to focus on inventory management, supply and distribution efficiency as well as operating expenditure optimisation to ensure it remains resilient.

“For FY18, we will continue to be aggressive to grow volume across all businesses whilst ensuring effective inventory management and continuing to push for operational excellence and cost optimisation,” said Ibrahimnuddin.

For its retail business, PetDag will focus on enhancing customer experience at the stations as well as leveraging digital solutions and e-commerce platforms to ramp up sales.

For the commercial and liquefied petroleum gas (LPG) businesses, PetDag said it will focus on fortifying their respective market leaderships and continue delivering value to the customers while the lubricant business will drive profitable and sustainable volume growth via targeted marketing programmes for key strategic brands.

The group expects the Brent price to continue to be volatile. The average crude oil price (Brent) has increased to US$68.54 per barrel in 4Q17, from US$61.44 per barrel in 3Q17. Full year Brent price averaged US$54.27 per barrel, said PetDag.

PetDag’s shares closed up 16 sen or 0.63% at RM25.70 today, for a market capitalisation of RM25.53 billion.