Petronas Dagangan Q2 earnings fall 21%

PETALING JAYA: Petronas Dagangan Bhd saw its net profit decline 21.3% to RM214.95 million for the second quarter ended June 30, 2016 against RM273.21 million in the previous corresponding period, mainly due to the impairment of subsidy receivables of RM89.9 million and higher operating expenditure for the retail segment.
Revenue for quarter under review was down 17.5% from RM6.47 billion to RM5.33 billion.
“The group will continue to focus on inventory management, supply and distribution efficiency as well as operating expenditure optimisation to ensure the company remains resilient in the face of a challenging environment,” it noted.
Petronas Dagangan said the retail segment will push for higher sales of petroleum products, leveraging on its superior products, namely PRIMAX 95 with Advanced Energy Formula and PRIMAX 97 Euro 4M with Advanced Energy Formula.
For the commercial segment, the group said it will emphasise on value by improving margins in targeted product and market segments, leveraging on the public and private sector investments on infrastructure and construction projects.