Kuala Lumpur, 28 February 2022 – The reopening of more economic sectors under Phase Four of the National Recovery Plan (NRP) has catalysed demand for fuel, boosting PETRONAS Dagangan Berhad (PDB)’s Profit Before Tax (PBT) by 73%to RM199.8 million for the quarter ended 31 December 2021 (Q4FY2021), as compared to the corresponding quarter last year.
Sales volume for the quarter rose by 16% for both its Retail and Commercial segments following lesser restrictions under the 4th phase of NRP. The higher average selling prices and sales volume contributed to an increase in PDB’s revenue by 61% to RM7.06 billion against the corresponding quarter last year.
For the year ended 31 December 2021 (FY2021), PDB delivered a strong finish recording a PBT of RM740.8 million – almost double that of last year’s performance of RM386.4 million. Revenue for the year stood at RM22.5 billion on the back of stronger performance, representing a 20% increase from FY2020.
PDB Managing Director and Chief Executive Officer Azrul Osman Rani said, “The lifting of travel bans and reopening of more economic sectors have accelerated demand for PDB’s products and services in the fourth quarter. We are pleased to see a healthy growth in volume across all our product segments, closing the year with a solid performance despite the challenges.”
“We have also begun solidifying our future-proof strategies which aim to ensure PDB remains sustainable and relevant in years to come. This includes diversifying our portfolios in line with foreseeable future trends in anticipation of consumers’ changing demand, particularly in the areas of sustainable energy and digital innovation.”
In anticipating the future shift to electric vehicles (EV), PDB has begun strengthening its position in the EV market as a provider of fast charging stations. In November 2021, PDB entered into a Memorandum of Understanding (MoU) with Mercedes-Benz Malaysia Sdn Bhd (Mercedes-Benz) and EV Connection Sdn Bhd (EV Connection), the operator of JomCharge network in Malaysia, to deploy DC Fast EV charger at PETRONAS stations by the first half of 2022. The strategic partnership is envisioned to address EV drivers’ pain point of insufficient fast chargers in Malaysia providing EV users end-to-end coverage between North-South Expressway and part of East-Coast Expressway leveraging PDB’s extensive network of petrol stations.
In making cleaner energy more accessible for the customers, Commercial business also plans to include Sustainable Aviation Fuel (SAF) in its offerings, in addition to liquefied natural gas (LNG) and solar energy solutions. Towards this end, PDB partnered with Malaysia Aviation Group (MAG) to jointly explore the long-term supply and adoption of Sustainable Aviation Fuel (SAF) at Kuala Lumpur International Airport (KLIA). On 17 December 2021, the collaboration reached a milestone as the inaugural Malaysia Airlines flight fuelled by SAF safely flew from Amsterdam Airport Schiphol and landed at Kuala Lumpur International Airport, made possible via a supply deal between PETCO Trading (UK) Ltd and SAF producer, Neste Corporation.
As part of its efforts to continue making customers’ lives simpler and better, PDB expanded its Segar@Mesra initiative to benefit the community in Sarawak. Segar@Mesra is a farmer-to- consumer concept that was first introduced in early 2021 to offer customers easy access to affordable fresh produce such as poultry, fish, vegetables, and fruits. With the expansion, Segar@Mesra is now available at 51 PETRONAS stations.
Meanwhile, the LPG business continued to strengthen its distribution channel through PETRONAS stations and selected sundry shops.
As for the Lubricant business, it is staying ahead of competition through prioritising differentiated customer experience, leveraging its own branded automotive workshop, PETRONAS AutoExpert as well as accelerating growth through e-commerce platforms such as Lazada and Shopee. As of December 2021, it has expanded PETRONAS AutoExpert to 14 outlets within the Klang Valley and Negeri Sembilan.
Over and above these, PDB continued to give back to the community during one of the worst floods that hit the country in December 2021. PDB was quick to offer relief to the victims at the onset, contributing essentials such as drinking water, cooking gas and cooking stoves. Beyond this, PDB also assisted the Department of Irrigation and Drainage Selangor by transporting water pumps needed to remove stagnant flood water in Sri Muda, Shah Alam.
ROVR continued to play a pivotal role in times of crisis. During the flood, the ROVR mobile refuelling trucks were deployed to deliver diesel to power up water pumps as well as fuel to substitute affected petrol stations to ensure continuous fuel supply for the community.
Azrul further commented, “While the economic condition has gradually improved, the recovery rate in the fourth quarter was slightly hampered by the threat of the new variant, Omicron, and we foresee the impact would spill over into 2022. Nevertheless, the rapid rollout of booster vaccination is expected to soften the impact.”
“We remain cautiously optimistic going into 2022 and will leverage positive signs of increased spending by consumers, gradual market growth driven by an expansionary 2022 national budget, an improved crude oil price and the continuous easing and lifting of restrictions being the catalysts for a stronger economic recovery,” he concluded.
PETRONAS recently ranked 1st in Malaysia by KPMG’s 2021 Global Customer Experience Excellence, which was conducted on over 88,000 consumers across 26 countries, regions, and jurisdictions to determine which organisations delivered outstanding customer experiences in their respective countries measuring against the The Six Pillars of Customer Experience. The report specifically highlighted the Company’s innovative offerings in meeting consumers’ needs such as the Setel app and its mobile refuelling service, ROVR.
PDB has declared an interim dividend of 26 sen per ordinary share for the quarter ended 31 December 2021. For the financial year 2021, PDB has declared total dividend of 70 sen per ordinary share, which represents 102% payout ratio.
