KUALA LUMPUR, 19 February 2021 – For the financial year ended 31 December 2020, PETRONAS Dagangan Berhad (PDB)’s sound business strategy and financial prudence have supported the Company’s performance, recording a Profit Before Tax (PBT) of RM386.4 million. This is despite being faced by external challenges including the sharp decline of petroleum product prices at the start of FY2020 and the ensuing COVID-19-related movement restrictions.
Revenue for the year was RM18,710.9 million compared to RM30,293.6 million in the preceding year, primarily impacted by lower sales volume and decrease in average selling prices.
The Company recorded gradual recovery in Q3FY2020, however the re-implementation of Conditional Movement Control Order (CMCO) in Q4FY2020 had affected PDB’s growth trajectory. For Q4FY2020, PDB registered a PBT of RM115.4 million, while revenue stood at RM4,394.8 million.
Speaking on the Company’s performance, PDB Managing Director and Chief Executive Officer Azrul Osman Rani said, “Though 2020 has been challenging, it was an enabler for innovation. We have accelerated our plans to diversify our product portfolio and digitalise our operations as part of our efforts in future-proofing the business. We foresee the current re-tightening of Movement Control Order restrictions to be a temporary challenge especially for the first quarter. As such, our efforts in creating new opportunities to meet customers’ changing needs will be key to our continuous business growth and development.”
Recently, PDB launched its best fuel, the PETRONAS Primax 97 with Pro-Race, engineered to meet the demands of advanced technology engines as well as motorists’ desire for a more powerful, responsive and efficient performance. The new fuel utilises a formulation that is unique to PETRONAS; enhanced with the world’s first Advanced Dual Friction Modifier, making the fuel 25% more efficient in friction reduction, compared to its previous formulation.
Azrul said, “Our new breakthrough has created much excitement in the market and we have received many positive testimonials from our customers. We saw encouraging sales performance since the launch and we are optimistic that the new fuel will contribute even higher volume for our gasoline segment once the travel restrictions are lifted.”
In meeting customers’ changing purchase and consumption behaviour, PDB also accelerated the expansion of its food and beverage offerings to include more ready-to-eat meals via its Makan@Mesra initiative. Part of PDB’s non-fuel growth strategy, Makan@Mesra offers an array of fresh and well-balanced premium food at affordable prices to address the increasing demand for food-to-go solutions. To date, there are nine PETRONAS stations that offer Makan@Mesra and the Company plans to expand to 200 stations by end of 2021.
PDB also recently launched Segar@Mesra at four of its stations, offering locally farmed produce; poultry, fish, vegetables and fruits at affordable price. The initiative allows the surrounding community a more convenient option to stock up on daily cooking needs as well as the added benefit of connecting local farmers to customers and communities.
Both Makan@Mesra and Segar@Mesra are also part of PDB’s sustainability agenda in supporting the growth of local entrepreneurs as all items offered are supplied by local vendors. Supporting local will be a core focus moving forward where PDB will actively reach out to collaborate with more local brands to grow the domestic economy.
PDB will also work towards PETRONAS’ pledge of achieving net zero carbon by 2050 and plans are underway to offset its carbon footprint. As part of the sustainable environment agenda, PDB has also diversified its product portfolio in Q3FY2020 to include the marketing of Liquified Natural Gas (LNG) as a cleaner fuel option. Via PETRONAS Group’s Virtual Pipeline System (VPS), PDB is now the first in Malaysia to supply LNG to off-grid customers in Peninsular Malaysia. Additionally, it is also marketing LNG to the marine industry via PETRONAS’ first LNG Bunkering Vessel (LBV) - MV Avenir Advantage -, which allows for ship-to-ship transfer, the first in South East Asia to offer such solution.
To remain ahead in the industry, PDB will continue to leverage on its innovative solutions including Setel, a mobile app that enhances customers’ experience at PETRONAS stations as well as ROVR, Malaysia’s first mobile refueling service for commercial customers.
Both solutions have proven pivotal during the pandemic. Setel has been regarded as the preferred option to purchase fuel and Kedai Mesra items nationwide to minimise physical contact and maximise safety at stations. More recently, Setel offers Deliver2Me to allow users to purchase selected items from participating Kedai Mesra outlets and have it delivered directly to them by a PDB crew member – all without leaving the comfort of their own vehicle. ROVR, which primarily focuses on commercial customers, was also deployed to ease customer refueling needs at restricted areas and more recently, to aid the needs of flood rescue operation team in Pahang.
These initiatives demonstrate PDB’s innovative strength, customer-centricity and commitment to push boundaries to deliver a seamless and frictionless experience to its customers and beyond.
PDB has declared an interim dividend of 17 sen per ordinary share for the quarter ended 31 December 2020. For the financial year 2020, PDB has declared total dividend of 38 sen per ordinary share, which represents 96% payout ratio.
