Business

Petronas Dagangan expects bitumen sales to go up by 3%

About 15% of Petronas Dagangan's commercial business in 2015 came from the sale of bitumen.

About 15% of Petronas Dagangan's commercial business in 2015 came from the sale of bitumen.

Syndicated News
Written by Syndicated News

KUALA LUMPUR — April 20, 2016: Petronas Dagangan expects bitumen sales to increase by three per cent this year, in tandem with the demand growth projected for the local industry this year.

The strong sales performance was supported by the high supply of bitumen in the industry last year due to the number of construction projects and road developments in the country.

According to managing director/chief executive officer Mohd. Ibrahimnuddin Yunus, bitumen sales contributed about 15 per cent to PDB’s overall commercial business last year, which in turn accounted for up to 40 per cent of the company’s net profit.

On the dispute between PDB’s subsidiary, Kuala Lumpur Aviation Fuelling System Sdn. Bhd. (KAFS), and Malaysia Airports Holdings’s (MAHB) unit,
Malaysia Airports (Properties) Sdn. Bhd., he said the case is currently in arbitration.

It was reported that KAFS was seeking an estimated RM456 million from MAHB as its 50-year concession period to operate the aviation fuelling system at the Kuala Lumpur International Airport (KLIA) has been shortened to 25 years.

On its aviation fuel operations, Ibrahimnuddin said PDB, which supplies Jet A-1 fuel to KLIA, aimed to provide the fuel to all carriers that fly to the
airport.

“We foresee more airlines coming into KLIA this year and we hope to supply the fuel to all the airlines.”

On the group’s business divestment in Vietnam, PDB chairman Md. Arif Mahmood said the divestment was expected to be completed this June or July.

Last year, PDB announced its plan to dispose of two units in Vietnam — Petronas (Vietnam) Co. Ltd. and Thang Long LPG Company Ltd. — to Totalgaz Vietnam Limited as part of the its broader reorganisation strategy.

At PDB’s annual general meeting today, it was stated that the company registered a profit before tax of RM1.1 billion for the year ended last December 31, an increase of 53 per cent s compared to the corresponding year under review.

“Despite 2015 having been a year full of uncertainties, PDB has proven its ability to adapt and continue to deliver value to our shareholders. We have
been prudent and have taken extensive measures of productivity in specific areas including inventory management, supply and distribution efficiency as well as cost-cutting,” said Arif.

Shareholders benefitted from consistent returns from the company quarter on quarter, with a total dividend declared amounting to 60 sen per ordinary share for the year under review. — Bernama

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