KUALA LUMPUR (Nov 17): Petronas Dagangan Bhd (PetDag) net profit for the third quarter ended Sept 30, 2020 (3QFY20) rebounded to RM212.66 million from the immediate preceding quarter's RM3.5 million, as the group saw recovery from the impact of COVID-19 and the various iterations of the Movement Control Order that was imposed to curb the pandemic.

Revenue climbed 65% to RM4.83 billion from RM2.93 billion previously, as sales volume grew 34% — mainly contributed by higher volume in mogas and diesel as nationwide activities gradually picked up from the movement restrictions — and as average selling prices (ASPs) rose 23%.

Still, on a year-on-year basis, the group's net profit is down 11% from RM239 million in 3QFY19, while revenue is 38% lower compared with RM7.81 billion previously, its stock exchange filing today showed. It attributed this to a 22% drop in sales volume and a 21% decline in ASPs.

The group declared an interim dividend of 11 sen per share payable on Dec 16 versus 16 sen per share declared in the previous corresponding quarter. The latest payout will raise its year to date dividend to 21 sen, versus 45 sen in the previous year.

As for the cumulative nine months ended Sept 30, PetDag's net profit was at RM186.75 million, down 73% from RM702.95 million a year ago, as revenue sank 36% to RM14.32 billion from RM22.5 billion.

“While our 3QFY20 performance has improved, we expect some impact on our volume in the next quarter as the Conditional Movement Control Order has been implemented in most States. As this pandemic continues to be an ongoing challenge, we have accelerated the diversification of our product portfolio to future-proof our business,” said PetDag's managing director-cum-chief executive officer Azrul Osman Rani.

The group, meanwhile, updated that it is now marketing liquefied natural gas as a cleaner fuel option to the marine industry, following the completion of its maiden ship-to-ship LNG bunkering transfer operation from MV Avenir Advantage — Petronas' first LNG Bunkering Vessel — to SIEM Aristotle at Pasir Gudang, Johor.

It has also become the first LNG solutions provider that uses road trucks for off-grid customers in peninsular Malaysia, following the completion of the virtual pipeline system solution by Petronas Energy and Gas Trading via the Regasification Terminal in Pengerang.

Moreover, it has revamped its food and beverage (F&B) options at its petrol stations, and expanded its Setel mobile app to include delivery of items from Mesra stores to customers’ vehicles while refuelling.

"Our fundamentals remain strong and we will continue to expand our offerings to cater to the demand in this new norm... As we keep our business’ progress on track, we remain vigilant of the uncertainties in the market. We will continue to prioritise prudent cash management and ensure our ecosystem remains robust to remain resilient through this challenging time," Azrul added.

Shares in PetDag finished unchanged at RM19.50 today, giving the group a market capitalisation of RM19.37 billion.