Petronas Dagangan sees 10 pct rise in revenue to RM9.8 bln in Q2 FY2024

KUCHING (Aug 21): Petroliam Nasional Berhad Dagangan Berhad (Petronas Dagangan) announced strong financial results for the second quarter of 2024 (Q2 FY2024).

For the quarter ended June 30, Petronas Dagangan achieved a record quarterly sales volume of 4.3 billion litres, driven by healthy demand during festive events, successful promotional campaigns, and higher volume from the airline industry, it said in a statement today.

This growth in volume contributed to a 10 per cent increase in revenue to RM9.8 billion compared to RM8.9 billion in the corresponding quarter last year, said the company.

While retail diesel volume saw a slight dip in June this year following the implementation of the Subsidised Diesel Control System (SKDS) 2.0, this was offset by growth in commercial diesel volume due to the higher retail diesel price.

“Overall, Petronas Dagangan’s pre-tax profit improved by 6 per cent despite the increase in operating expenditures in line with higher activities.

“Cumulatively, revenue for the first half of 2024 (1H FY2024) saw an increase of 10 per cent to RM19.2 billion. This growth was underpinned by strong demand, significant festive events, and compelling promotional activities, further complemented by robust air passenger movements during this period,” said Petronas.

Although higher product costs and operating expenditures posed challenges, the company said it generated a healthy pre-tax profit of RM722.9 million, demonstrating its ability to navigate market dynamics effectively.

“This record sales volume is a testament to the strength of our brand and the trust our customers place in us. While we acknowledge the challenging market conditions, we are committed to ensuring sustained performance through strategic focus and operational efficiency,” said Petronas Dagangan managing director and chief executive officer Azrul Osman Rani.

“Our ability to maintain profitability in this environment underscores the resilience of our business model and the effectiveness of our strategies.”

Looking ahead, Petronas Dagangan said it remains focused on sustaining its performance across all segments.

For the retail segment, the company said it will continue to grow its customer base and pursue value-adding partnerships to expand its reach.

The commercial segment, Petronas said, is set to capitalise on the aviation sector’s ongoing recovery and opportunities in other high value margin sectors, leveraging its competitive pricing advantage.

Meanwhile, the convenience segment, led by Mesra and Setel, will remain a key driver of growth in the non-fuel business.

Azrul said Petronas Dagangan will continue to focus on navigating the complexities of the market while investing in key growth areas, enhancing operational efficiency and delivering on its commitment to making life simpler and better for its customers.

“As we have for the past 42 years, Petronas Dagangan will continue to uphold our promise to the stakeholders we serve,” he added.

Petronas Dagangan has declared an interim dividend of 20 sen per ordinary share for the quarter ended June 30.