KUALA LUMPUR: Petronas Dagangan Bhd’s (PDB) profit from continuing operations fell 19 per cent year-on-year to RM271.12 million for the third quarter (Q3) ended Sept 30, 2018, on the back of lower sales volume and higher operating expenses.
The results for the corresponding period last year had included gains from the disposals of a wholly-owned subsidiary and also a 40 per cent-owned associate company in the Philippines for RM424.6 million, which led to PDB’s profit more than tripling to RM761.73 million for that quarter.
For the quarter under review, revenue was higher at RM7.82 billion against RM6.87 billion a year earlier due to higher market prices.
In a statement, the company said its retail business recorded an increase of 2.3 per cent in sales volume and 5.5 per cent in gross profit, while the lubricant business saw a 4.4 per cent rise in sales volume and 8.4 per cent in gross profit.
However, the commercial business posted a decline in both sales volume and gross profit by 8.5 per cent and 6.0 per cent, respectively, due to lower demand for diesel and Jet A-1, it said.
PDB also said the liquefied petroleum gas business recorded a marginal decline of 1.8 per cent in sales volume while overall gross profit decreased 30.7 per cent due to higher product cost.
PDB declared a dividend of 16 sen per share for Q3 compared with 20 sen a year earlier.
“This year is all about reinventing our business, especially for retail, where investment is necessary to create a superior customer experience through innovative solutions and strategic partnerships that will help grow both our fuel and non-fuel businesses.
“The company is also focusing on its digital transformation agenda to enhance operational efficiency to ensure the business remains resilient and competitive,” said Managing Director and Chief Executive Officer Datuk Seri Syed Zainal Abidin.
He said going into this quarter, the company was cautious that the continued volatility of oil price, coupled with Malaysia’s economic environment and consumer sentiment, would have an impact on the group’s profitability.
“We will continue to focus on inventory management, supply and distribution efficiency as well as operating expenditure optimisation to sustain the company’s profitability,” he added.