Kuala Lumpur, 4 November 2014 – PETRONAS Dagangan Berhad (PDB) registered a profit before tax (PBT) of RM223.6 million for the quarter ended 30 September 2014, a decrease of RM92.1 million from RM315.7 million registered in the corresponding quarter last year, due to unfavourable Means of Platts Singapore (MOPS) price movement and the challenging market environment.

Revenue for the period under review was RM8,226.6 million, a marginal decrease of 2% amounting to RM185.4 million as compared to the corresponding quarter last year.

“The challenging and volatile external market environment, particularly the unfavourable MOPS price movement and decrease in sales volume for diesel, have impacted our performance this quarter,” said Mohd Ibrahimnuddin Mohd Yunus, Managing Director and Chief Executive Officer of PDB.

“Despite the tougher and competitive market conditions, we are determined to grow our four core businesses in the longer term via the initiatives which we have put in place. We are constantly looking at growth opportunities within our businesses to enable PDB to further strengthen its overall market leadership position,” he added.

The unfavourable MOPS price movements had impacted PDB’s gross profit by RM70.5 million while the lower sales volume of Diesel by 71.3 million litres was a result of the stricter controls on the sale of Diesel imposed by the regulatory agency.

Earnings per share for the quarter under review was 16.1 sen, a decrease of 6.7 sen as compared to the 22.8 sen for the same quarter in the previous year. The Total Equity Attributable to Shareholders as at 30 September 2014 was RM4,856.4 million, increased from 31 December 2013 by RM66.3 million. This was mainly due to net profits registered for the period of RM501.1 million less dividend paid to shareholders amounting to RM432.2 million.

For the quarter ended 30 September 2014, the overall performance of the Retail Business has been impacted by the lower sales volume of Diesel due to the stricter controls imposed on Diesel sale despite the higher sales volume contribution from MOGAS. However, the Retail Business has continued to pursue other growth opportunities by offering enhanced convenience to its customers via its one-stop-convenience centre. The over 700 Kedai Mesra have achieved robust growth in hospitality income, complementing the offerings at over 1,000 PETRONAS stations throughout Malaysia.

Ibrahimnuddin explained that PETRONAS is committed to delivering value to its customers especially in product quality and innovation. For example, motorists are now enjoying the new PETRONAS PRIMAX 95 with Advanced Energy Formula and PETRONAS Syntium 7000 because of the long-term investment made by PETRONAS. The Company has now developed new products and formulations using the F1 experience via the partnership with the MERCEDES AMG PETRONAS Formula OneTM Team.

“PETRONAS is not just a mere sponsor of the F1 team – we are the Technical Partner to the MERCEDES AMG PETRONAS Formula OneTM Team. This partnership has enabled us to bring the winning formula from the tracks onto the roads for everyday use,” he said.

On the Commercial Business side, whilst the overall sales volume registered a decrease by 7%, PDB has increased its gross profit for the segment due to its focus on value growth. The Commercial Business will continue to pursue the high value and high margin segment to drive profitability.

PDB’s LPG Business recorded a volume growth of 2% as compared to the same period last year, sustaining its domestic market leadership position as Malaysia’s No 1 Cooking Gas.

Meanwhile, the Lubricants Business, despite being in a very competitive segment, registered a volume growth of 4%. The PETRONAS Syntium 7000 continues to make inroads into the high street segment, supported by the growth of the fully branded PETRONAS LubeXperts workshops, which is expected to reach a total of 80 outlets within this year.

“It has been a challenging year thus far with the volatile external market environment and intensified competition. We take it as a challenge for us to push harder and seize the market opportunities to become a clear brand of first choice in the retail industry,” concluded Ibrahimnuddin.