KUALA LUMPUR (Aug 23): Petronas Dagangan Bhd's (PetDag) net profit jumped more than 23-fold to RM82.14 million in the second quarter ended June 30, 2021 (2QFY21) from RM3.51 million in previous financial year's corresponding quarter, on the back of higher gross profit as a result of improved oil prices and volume.

Its earnings per share swelled to 8.3 sen for 2QFY21 year-on-year (y-o-y) from 0.4 sen, the group's filing with Bursa Malaysia showed.

Quarterly revenue soared 75.46% to RM5.14 billion in the current quarter compared with RM2.93 billion a year before.

The group has declared an interim dividend of 10 sen per share for the quarter under review. The dividend is payable on Sept 22. This is double the five sen per share declared a year ago.

In contrast, PetDag's net profit was sharply lower on a quarterly basis. Its net profit shrank 57% quarter-on-quarter (q-o-q) against RM191.11 million in the preceding quarter, 1QFY21. Revenue inched up 0.8% from RM5.1 billion in 1QFY21.

PetDag attributed the lower q-o-q profitability to thinner gross profits in both retail and commercial segments, in tandem with higher product costs, less favourable crude oil price trend and lower sale volume.

It added that profitability also weighed further due to higher operating expenditure mainly from higher repair and maintenance works at stations and terminals during the quarter.

PetDag's cumulative net profit for the six-month period ended June 30, 2021 (1HFY21) climbed to RM273.25 million as opposed to a net loss of RM25.91 million in 1HFY20. Cumulative revenue grew 8.03% to RM10.25 billion for 1HFY21 compared with RM9.49 billion a year earlier, indicating an improved profit margin.

Commenting on the company's performance, PetDag managing director and chief executive officer Azrul Osman Rani said in a separate statement, "We are pleased that business has gradually improved from last year. However, we remain cautious of the uncertainties in this current climate and will continue to be prudent and optimise our resources.

"We will also continue to look at diversification of our portfolio, while leveraging strategic partnerships and digital platforms that can support our future-proof strategies to bring value added to our customers."

In line with accelerating its non-fuel segment, Azrul said the retail business will be expanding its food-on-the-go (ready-to-eat) solutions corner in Kedai Mesra to 80 locations nationwide by end of the year.

Meanwhile, the commercial business continues to advocate the adoption of liquefied natural gas (LNG) as a cleaner fuel option. In 2QFY21, it converted five customers to switch to LNG.

Azrul cautioned that the pandemic remains a key risk for PetDag.

"However, we anticipate the government's recent announcement on the relaxation of restrictions will help stimulate economic activities. We will continue to monitor the market trend for growth opportunities and accelerate our targeted marketing campaigns," Azrul concluded.

PetDag's share price rose eight sen to RM18.80 on Monday, valuing the group at RM18.68 billion.