KUALA LUMPUR (Aug 25): Petronas Dagangan Bhd (PetDag) managed to post a net profit of RM3.51 million for the second quarter ended June 30, 2020 (2QFY20), after suffering a net loss of RM29.42 million in the preceding quarter.

This was despite revenue falling 55.27% to RM2.91 billion from RM6.55 billion in 1QFY20, the group's filing with Bursa Malaysia showed.

The group attributed the profit to the improved demand during the Conditional Movement Control Order (CMCO) period, with its June sales number surpassing the April figure by over 50%.

CMCO replaced the Movement Control Order, which was implemented from May 4 until June 9.

The net profit was, however, lower by a significant 97.97% when compared with the RM172.75 million net profit reported for the previous financial year's 2Q. Revenue dropped by 61.46% from RM7.61 billion a year ago.

The group has declared an interim dividend of five sen per share, payable on Sept 24. This is 64% lower compared with the 14 sen per share declared a year ago.

Commenting on the group's performance, PetDag managing director and chief executive officer Azrul Osman Rani said: "Overall, April was the most challenging month in view of the Covid-19 pandemic coupled with the declining petroleum product prices.

"However, following the ease of restrictions by the government from May onwards, our business has seen a sharp improvement as compared to April. Nevertheless, we are cautious that the aviation sector may take longer to recover and this will continue to impact our Jet A1 sales volume."

Azrul said that in withstanding the challenging period, PetDag has focused on prudent cash management, effective risk mitigation and is ensuring that its ecosystem remains robust.

"We will continue to leverage on our strong foundation for a rebound, while prioritising the safety of our customers, employees and business partners," he said.

PetDag reported a cumulative net loss of RM25.91 million for the six months ended June 30, 2020, against a net profit of RM463.95 million for the same period last year. Half-year revenue sank 35.44% to RM9.48 billion from RM14.69 billion previously.

PetDag's share price rose 82 sen or 4.02% to RM21.22 today, valuing the group at RM21.08 billion. Some 119,000 shares were traded. Over the past 12 months, the counter has been traded between RM17.5 and RM26.41.

Edited by S Kanagaraju