Business

Petronas Dagangan optimistic of 2016 outlook

Better management of inventory and costs helped the company to better profits in 2015 compared to the year before despite lower revenue.

Better management of inventory and costs helped the company to better profits in 2015 compared to the year before despite lower revenue.

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Written by Syndicated News

KUALA LUMPUR — April 1, 2016: Petronas Dagangan is optimistic of its prospects for this financial year as its underlying strategies in facing the challenging environment remain valid.

Managing director/chief executive officer Mohd. Ibrahimnuddin Yunus said the group would continue with its strategies on inventory management, operating expenditure management, and supply and distribution efficiency.

“Based on what is happening in the industry as well as current oil prices, those strategies are still relevant in the current condition.

“With those strategies in place, we hope we can give the right returns to stakeholder and shareholders this year,” he said after officiating the launch of the Rio 2016 Olympic Games Spend & Win Campaign here today.

Petronas Dagangan’s pre-tax profit for the financial year ended last December 31 rose to RM1.08 billion from RM709.29 million in the corresponding period a year ago on the back of revenue that slipped to RM25.17 billion from RM32.34 billion previously.

Ibrahimnuddin attributed the achievement to efficiency in managing inventory and costs.

“Our strategies worked. In the volatile market (of crude oil), the inventory management is very important.

“Our efficiency is there to ensure that the inventory is not affected even at the lower level and at the same time our cost structure is also at the
optimal level,” he added.

On capital expenditure budget this year, Petronas Dagangan has allocated RM400 million, mainly to open 10 to 15 more stations.

The two-month Rio 2016 Olympic Games Spend & Win contest starts today until June 1.

Petronas Dagangan head of retail business Shaharuddin Muhammad Sidek said all Visa cardholders, including Petronas Maybank Visa cardholders, in Malaysia would be entitled to participate in the campaign by spending a minimum of RM50 on their visa cards at the more than 1,000 Petronas kiosks and 760 Kedai Mesra nationwide.

“Weekly prizes include 10 Samsung Galaxy S7 Edge mobile phones and 120 Petronas Mesra points worth RM200 each.

“The grand prize of a trip for two to the Rio Olympic Games 2016 will also be rewarded to the winner at the end of the campaign,” he said. — Bernama

 

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