KUALA LUMPUR (Nov 27): Petronas Dagangan Bhd’s (PetDag) net profit fell 65% to RM270.27 million in its third quarter ended Sept 30, 2018 (3QFY18) from RM761.73 million a year ago — despite higher revenue — mainly because the previous year had recognised a subsidiary disposal gain of RM424.6 million.
Lower sales volume and higher operating expenses also contributed to the weaker 3QFY18 net profit, its Bursa Malaysia filing today showed.
Revenue came in 14% higher at RM7.82 billion compared with RM6.87 million a year ago, mainly contributed by an increase in Mean of Platts in Singapore (MOPS) product prices, offset by a 3% sales volume decline.
PetDag declared an interim dividend of 16 sen per share, payable on Dec 26, which would bring its year-to-date payout to 45 sen per share, versus 48 sen per share last year.
In the cumulative nine months (9MFY18), PetDag's profit declined 36% to RM803.17 million from RM1.26 billion a year ago — as the previous year had recognised a gain on disposal of subsidiaries of RM430.8 million — while revenue grew 9% to RM22.17 billion from RM20.26 billion.
The stronger topline was primarily driven by a 10% rise in average selling prices, in line with higher MOPS products prices, despite a 1% fall in sales volume.
On prospects, PDB said prices of Brent crude oil, which averaged at US$75.25 per barrel, up 1% from 2QFY18's US$74.23 per barrel, are expected to continue to be volatile.
In a separate statement, PetDag managing director and CEO Datuk Sri Syed Zainal Abidin said FY18 is all about reinventing PetDag's business, especially for retail, where investment is necessary to create a superior customer experience through innovative solutions and strategic partnerships to help grow both its fuel and non-fuel businesses.
“Going into the next quarter, the company is cautions that the continued volatility of oil price coupled with Malaysia’s economic environment and consumer sentiment, will have an impact on the group’s profitability. We will continue to focus on inventory management, supply and distribution efficiency as well as operating expenditure optimisation to sustain the company’s profitability,” he added.
PetDag's shares fell 58 sen or 2.1% to close at RM27.10 today, giving it a market capitalisation of RM26.92 billion.