Higher profit from retail and convenience lifts Petronas Dagangan’s earnings in Q2

Wednesday, 24 Aug 2022 7:20 PM MYT

KUALA LUMPUR, Aug 24 — Petronas Dagangan Bhd’s (PetDag) net profit jumped to RM237.68 million in the second quarter ended June 30, 2022, from RM82.14 million previously, mainly contributed by higher gross profit from its retail and convenience segments due to higher demand during the period.

The group said the increase was further contributed by higher other income following a one-off gain from the disposal of its LPG business in Sarawak but offset by higher operating expenses mainly attributable to dealers’ commission.

Its revenue for the quarter also jumped to RM9.50 billion versus RM5.18 billion year-on-year following an increase in average selling prices by 30 per cent and higher sales volume by 28 per cent.

For the six-month period, PetDag’s net profit advanced to RM356.17 million from RM273.25 million a year earlier on the back of revenue of RM17.12 billion, from RM10.32 billion in the previous corresponding period.

PetDag said its overall sales volume registered an upward trend during the second quarter following the easing of travel restrictions, increased economic activities during the festive season, and the resumption of international travels at the beginning of the quarter.

The group’s performance was further supported by favourable Brent price of US$113.78 per barrel compared to US$68.78 per barrel in the corresponding quarter last year.

Riding on the economic recovery, PetDag said it continues to focus on growth in the non-fuel market with the opening of seven new Mesra Café locations in the second quarter of 2022 with more offerings available to complement the growth of its convenience segment.

As of June 30, 2022, PetDag’s total assets increased by RM7.65 billion, or 80 per cent, mainly due to a delay in subsidy receivable as well as increases in prices while total liabilities increased by RM7.60 billion, mainly due to extended credit term from the main supplier as well as the higher purchase price.

Moving forward, the group said it would collaborate with established electric vehicle industry partners in order to accelerate the adoption of and commercialisation of clean energy.

“The non-fuel market will strengthen further with the opening of more Mesra Cafe locations nationwide, as we aim to leverage our existing networks and infrastructure to widen our reach, improve our retail offering, and future-proof our business,” it added. — Bernama