KUALA LUMPUR (April 25): Petronas Dagangan Bhd increased its capital expenditure (capex) allocation to about RM500 million for financial year ending Dec 31, 2019 (FY19) from some RM300 million in FY18, to refurbish existing petrol stations and Mesra convenience stores.
Petronas Dagangan managing director and chief executive officer Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said the higher capex allocation will also finance planned establishment of about 10 new petrol stations within the group's network.
“We are currently leading the market (in terms of number of petrol stations) with about 1,057 stations,” Syed Zainal Abidin said at a media briefing after Petronas Dagangan's annual general meeting here today.
“We already have substantial land bank. Now it is a matter of how to operationalise these land banks. So we are looking at about 10 new stations [this year]. Last year, we did about 12 [new stations],” he said.
Syed Zainal said the establishment of new petrol stations will be at strategic locations with high density population.