KUALA LUMPUR: Petronas Dagangan Bhd’s share price rose five per cent to RM22.68 after its earnings exceeded analysts’ expectation.
PetDag’s core net profit of RM819.6 million for the nine-months period of this year was above expectation and accounted for 86 per cent of consensus estimate.
Its earnings surged 41.4 per cent quarter-on-quarter on the back of higher sales volume and expansion in product margins due to more favourable MOPS pricing movement.
Hong Leong Investment Bank said superior margins are likely sustainable in the fourth quarter of this year due to positive movement in oil prices (leading to higher MOPS pricing).
However, it expects the trend to subside next year thus leading to reduction of product margins in 2018.