PETRONAS DAGANGAN ‘PLAYED TO WIN’ TO ACHIEVE HIGHEST PERFORMANCE IN 35 YEARS

25 Apr 2018
Kuala Lumpur, 25 April 2018 – PETRONAS Dagangan Berhad (PDB) concluded 2017 with a 63% increase in Profit After Tax, from RM946.5 million in FY2016 to RM1,545.0 million, which include gains from divestment of its subsidiary.

The achievement is attributed to the company’s successful efforts in implementing effective sales strategies, elevating customer experience, managing its inventory and continued cost-optimisation initiatives, amidst the challenging market and intense competition, which saw PDB’s overall sales volume decreasing marginally by 1% in line with the industry.

Speaking at its 36th Annual General Meeting, PDB’s Managing Director and Chief Executive Officer, Dato’ Mohd Ibrahimnuddin Mohd Yunus said, “Against the volatility in global crude oil price and challenging business landscape, we continued to outperform and demonstrate our resilience to translate our sound strategies in achieving a strong set of operational and financial result.”

Under Retail business’ fuel segment, PDB launched the new PETRONAS Dynamic Diesel Euro 5 with Pro-Drive, which is now available at 60 stations across the country, and expanded the availability of PETRONAS PRIMAX 97with Advanced Energy Formula to more than 700 stations. For its non-fuel segment, the introduction of Mornings@Mesra breakfast combo yielded a 20% increase in food sales. PDB also revamped its Mesra card loyalty point structure to 3 points per litre to be the highest in the industry, which contributed to approximately 200,000 increase in the number of active members.

In elevating customer experience and creating winning solutions, PDB forged several strategic alliances including Samsung for cashless payment, Grab for its exclusive drivers programme, as well as food solution providers, A’rooma Café, Pie Face and The Morning After. It also expanded the availability of EV charging facility (ChargEV) to 55 stations under a partnership with Malaysian Green Technology Corporation. The Retail business also diversified its point-of-sales to e-commerce platforms, Lazada, Shopee and 11Street.

PDB’s commercial business remained the market leader, achieving 2% increase in sales volume against a competitive and mature market. The gain was mainly contributed by aviation industry through contract renewals with key customers, gaining of new customers and increased flight frequencies which saw higher jet fuel usage.

PDB continued to uphold its position as the No. 1 cooking gas in Malaysia, backed by competitive pricing and effective supply optimisation at all terminals. To increase sales and expand its reach, it introduced the Gas2U mobile application, allowing customers to order cooking gas at their convenience, anywhere and anytime.

Meanwhile, its Lubricant business has implemented strategic growth initiatives to strengthen its foothold in the ever competitive Malaysian market. Apart from its long-standing partners PROTON and PERODUA, it renewed contracts with IOI Plantation and Honda, as well as newly signed contracts with Keretapi Tanah Melayu Berhad and Sunway Group. It also relaunched its PETRONAS Sprinta with UltraFlex™.

Supporting all these efforts are its operational and cost-efficiency measures to ensure the sustainable growth of the company. This includes digitalisation of processes, enhancements of customer service delivery, integration of inventory management, renegotiation of contracts for competitive product cost and collaboration with other industry players to enhance asset utilisation and efficiency.

“Going forward, we will continue to focus and grow volume across all business segments by defending our current leadership position. We are committed to push boundaries to continue to achieve operational and commercial excellence and steer the business towards sustainable growth,” Dato’ Ibrahimnuddin concluded.

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