Business

Petronas Dagangan reserves RM400m for capex

The company expects 2016 to be a tough year.

The company expects 2016 to be a tough year.

Syndicated News
Written by Syndicated News

KUALA LUMPUR — January 5, 2016: Petronas Dagangan is allocating about RM400 million in capital expenditure (capex) to finance the expansion of its operations this year.

Most of the money will be used to add between 15 and 20 petrol stations, said managing director/chief executive officer Mohd. Ibrahimnuddin Mohd. Yunus today at the launch of a retail campaign for Kad Mesra holders here.

Petronas Dagangan is a leading retailer and marketer of downstream oil and gas products. Its business has grown to become Malaysia’s largest petroleum retail network with over 1,000 stations and 725 Kedai Mesra in the country.

The retail campaign for Kad Mesra is among the on-going initiatives by the company to provide added value to customers through its network.

Ibrahimnuddin said the company would maintain its strategies this year, including being prudent in its inventory management in tackling the
decline in global oil prices.

Petronas Dagangan will also continue with its optimal cost cutting measures since these have worked well for the company.

“We have put in strategies that were in place in 2015 and we still feel that they are applicable for 2016.

“We expect 2016 to be a tough year. We have no idea how tough it is going to be but whatever the market is facing we have our plans in place.

“These strategies will also move forward the company,” said Ibrahimnuddin. — Bernama

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