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Hefty jump for Petronas Dagangan 2016 Q4 pre-tax

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KUALA LUMPUR — February 21, 2017: Petronas Dagangan’s pre-tax profit for the fourth quarter ended last December 31 surged to RM335.989 million from RM125.284 million a year earlier.

The company told Bursa Malaysia today that the increase in pre-tax profit was attributed to both the retail and
commercial segments.

Revenue, however, declined slightly to RM6.007 billion from RM6.018 billion due to a five per cent decrease in average selling prices which was offset by a four per cent increase in sales volume.

The revenue from the retail segment fell by RM123.4 million due to a six per cent drop in average selling price, impacting both mogas and diesel despite volume being higher by two per cent.

Operating profit for the segment registered an increase of RM201.8 million mainly due to improved margins, it said, adding that revenue from the commercial segment rose RM115.9 million due to an eight per cent increase in sales volume.

Operating profit increased RM17.1 million mainly due to improved margins from aviation and higher volume.

For the year, pre-tax profit rose to RM1.212 billion from RM1.082 billion, attributable to both retail and commercial segments.

Revenue fell to RM21.786 billion from RM25.060 billion previously as a result of a 14 per cent decrease in average selling price.

Its operating profit registered an increase of RM155.8 million compared with the previous year despite the impairment of subsidy receivables of RM89.9 million made in the second quarter of 2016.

On prospects, Petronas Dagangan said the economic and business environment outlook for this year remains uncertain.

In a statement today, Petronas said it has signed the engineering, procurement, construction and commissioning (EPCC) contract for the Pengerang Integrated Complex (PIC)’s Flexible High-Density
Polyethylene (Flexi HDPE) plant.

The contract is with the Chinese consortium of Tecnimont S.p.A, China Huanqiu Contracting and Engineering Co. Ltd., TECNIMONTHQC S.c.a.r.l and TecnimontHQC Sdn. Bhd.

The signing affirms that petrochemicals remain a key component in Petronas’ business growth, where we intend to be a major regional player, providing wider portfolio of petrochemical products and solutions. — Bernama

 

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