Kuala Lumpur, 6 August 2015 – PETRONAS Dagangan Berhad (PDB) registered a profit before tax of RM374.0 million for its second quarter ended on 30 June 2015, a 49% increase compared to the corresponding quarter last year due to higher gross margins recorded, lower operating expenditure and higher other income.

Revenue for the quarter under review was RM6,493.1 million, a decrease of 22% as compared to the results of the corresponding quarter last year mainly as a result of decrease in average selling price in line with the decline in Means of Platts Singapore (MOPS) prices, beginning June 2014.

"Earlier this year, we started the new financial year on a positive note despite uncertainties in the market environment and cautious consumer spending patterns, which have impacted the demand for fuels.

“The measures undertaken in managing operating expenses through cost reduction efforts, inventory optimisation and enhancing supply and distribution efficiency is paying off,” said Mohd Ibrahimnuddin Mohd Yunus, Managing Director and Chief Executive Officer of PDB.

Earnings per share for the quarter was 27.5 sen - a 47% increase compared to the corresponding quarter last year as a result of higher profit for the current quarter.

Total equity attributable to shareholders was RM4,900.1 million, increased from 31 December 2014 by RM147.9 million due to net profits registered for the quarter ended 30 June 2015.

For the Retail Business, the decrease in margin by 7% following lower Diesel volume due to implementation of managed float pricing mechanism beginning December 2014. Cautious consumer spending had resulted in lower fuel and non-fuel demand.

The Commercial Business saw an increase in margin by 22% due to higher margins and sales volume from Bitumen and Diesel compared to the corresponding quarter last year.

The LPG Business also did well by recording more than double growth in margin compared to the corresponding quarter last year, contributed by higher bulk LPG sales.

The Lubricants Business being a competitive segment has recorded a decrease in volume as compared to the corresponding quarter last year due to market softening.

“We foresee the market to be challenging with uncertainty of the crude oil price, moderate growth and cautious consumer spending. For PDB, we will face these challenges while ensuring our fundamentals are sound,” concluded Ibrahimnuddin.