Petronas Dagangan Bhd (PDB) concluded FY2017 by achieving another record-breaking year, fuelled by its improved margins and gain from disposal of its subsidiaries. 

The Group registered a record Profit After Tax (PAT) of RM1,545.0 million, an increase of 63%, from RM946.5 million in FY2016. PAT from continuing operations improved by 21% to RM1,087.9 million.

Revenue rose by 24%, to RM26,737.9 million as compared to RM21,534.6 million reported in previous year, primarily attributable to an increase in average selling prices by 25% in tandem with increasing Means of Platts (MOPS) products prices. 

Overall sales volume dropped marginally by only 1%, in line with market de-growth which affected all industry players. Meanwhile, the Group’s gross profit registered an increase of 12% reflecting effective management of inventories and cost optimisation initiatives.

Speaking about the Company’s performance, PDB Managing Director and Chief Executive Officer Datuk Mohd Ibrahimnuddin Mohd Yunus said, “We are pleased to announce yet another outstanding year amidst challenging market conditions and stiff competition. Our strong performance is a testament that the strategies and winning formula we have in place are effective and yielding positive results”.

Group earnings per share, including gains on disposal of subsidiary for FY2017 increased by 59.9 sen to 155.0 sen against last year in line with the higher profit registered. 

In view of the year’s accomplishment, PDB has declared an interim dividend of 27 sen per ordinary share and a special dividend of 22 sen per ordinary share for the fourth quarter of FY2017. The cumulative dividend payout for FY2017 is 97 sen per ordinary share.

In comparison to last year’s performance, Retail business recorded a 13% increase in gross profit mainly from the sales of diesel and mogas. Mesra C-store income also registered an increase by RM5.7 million following attractive promotion campaigns. Commercial business registered an 11% increase in gross profit attributable to increased volume from Jet-A1 and diesel.

LPG business recorded a 21% increase in gross profit resulting from competitive pricing and effective supply optimisation strategies, while Lubricant business’ gross profit decreased by 5% due to higher product cost. 

Ibrahimnuddin further added, “For FY2018, we will continue to be aggressive to grow volume across all businesses whilst ensuring effective inventory management and continuing to push for operational excellence and cost optimisation.”

Retail business will focus on enhancing customer experience at the stations as well as leveraging digital solutions and e-commerce platform to ramp up sales. 

Commercial and LPG businesses will focus on fortifying their respective market leaderships and continue delivering value to the customers while Lubricant business will drive profitable and sustainable volume growth via targeted marketing programmes for key strategic brands.

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