KUALA LUMPUR: Petronas Dagangan Bhd (PetDag) reversed into the red in the first quarter ended March 31, 2020, recording a net loss of RM29.42 mil compared with a net profit of RM291.20 mil a year earlier.
Revenue also declined, to RM6.55 bil from RM7.81 bil in the same period last year.
In a filing with Bursa Malaysia today, PetDag attributed the RM1.25 bil drop in group revenue to a 4% fall in overall sales volume in both the retail and commercial segments and 3% drop in average selling prices.
The loss, it said, was due mainly to lower gross profit following a sharp decline in Means of Platts Singapore (MOPS) prices trend, lower sales volume towards the end of 1Q and higher operating expenses attributable to professional services costs and depreciation costs.
“The group experienced challenging market conditions towards the end of the first quarter arising from the impact of the Covid-19 pandemic globally as well as the constraints of the Movement Control Order,” it said.
The board has declared an interim dividend of five sen per share amounting to RM49.67 mil for 1Q20, payable on June 17. This is down from an interim dividend of 15 sen per share in the same quarter last year, which translated into a payout of RM149.02 mil.
On prospects, PetDag said the group’s results were impacted by the declining petroleum prices following the volatility in crude oil prices.
“Whilst average Brent in 1Q20 was US$50.26 per barrel compared to previous quarter’s US$63.32, the sharp decline in March, which was driven by the rise of the Covid-19 pandemic and OPEC+ price war set the lowest monthly average price of US$31.83 seen in the last five years,” it said.
It added that the group would continue to focus on inventory management, supply and distribution efficiency as well as operating expenditure optimisation to ensure that the group remains resilient and sustainable to run its operation.
In a separate filing, PetDag announced that its 38th annual general meeting on June 10 would be held fully virtual and entirely via Remote Participation and Voting at https://tiih.online due to the pandemic.
The broadcast venue would be Meeting Room 4003, Level 40, Tower 1, Petronas Twin Towers – a change of venue from Exhibition Hall 1 of the Kuala Lumpur Convention Centre announced in March. – May 18, 2020, Bernama
