08/23/2019 | Press release | Distributed by Public on 08/23/2019 05:40
As a result, revenue for the quarter increased by 5% to RM7,606.2 million despite lower average selling price, which is in tandem with declining Mean of Platts Singapore (MOPS) price trend as compared to the corresponding quarter last year.
Overall, PDB's Profit Before Tax (PBT) decreased to RM237.6 million due to lower gross profit coupled with higher operating expenditure and lower other income.
PDB's Managing Director and Chief Executive Officer, Dato' Sri Syed Zainal Abidin Syed Mohd Tahir said, 'Amidst a challenging market environment, we have continued to boost our overall sales volume and this is strong testament to the effectiveness of our business strategies and the superior quality of our products. Mogas volume alone increased by 6% quarter on quarter and this clearly reflects the confidence that our customers have for our new fuel, PETRONAS Primax 95 with Pro-drive, since we launched it in January this year.'
'Nevertheless, we are cognisant of the impact that the continued volatility of oil price, economic condition and consumers' sentiment will have on PDB's overall profitability, and growing our volume will remain our key strategic focus,' he added.
For the quarter ended 30 June 2019, Retail business' sales volume grew by 8% attributable to improved stations' productivity, increased number of operational stations and higher volume registered for the new PETRONAS Primax 95 with Pro-Drive. Gross profit decreased by 5% mainly due to declining MOPS price trend and higher product costs during the quarter.
For the same period, Commercial business registered a 9% increase in sales volume mainly attributable to higher demand for Jet A1, although gross profit decreased by 9% following lower margin for Diesel and
declining volume for Fuel Oil.
LPG business' sales volume grew by 3% while gross profit declined by 11% due to higher product costs.
Lubricant business' sales volume and gross profit decreased by 15% and 5% respectively following lower demand in the commercial segment amidst a competitive market landscape.
Dato' Sri Syed Zainal added, 'We anticipate the market will remain challenging but we will continue to push for volume growth through leveraging our newly launched fuel and lubricants, our extensive supply and distribution chain as well as vast network of stations and partners.'
'Over and above this, we remain committed to increase profitability by leveraging strategic partnerships to grow our non-fuel offerings. We will continue to increase station throughput by providing seamless and frictionless customer experience through our digital innovation such as Setel and RoVR,' Dato' Sri Syed Zainal concluded.
PDB has declared an interim dividend of 14 sen per ordinary share for the quarter ended 30 June 2019.