PetDag Q1 earnings fall 14%

PETALING JAYA: Petronas Dagangan Bhd's (PetDag) net profit for the first quarter ended March 31, 2018 fell 14% to RM218.48 million from RM253.15 million a year ago, mainly due to the retail segment that saw increase in cost and higher operating expenditure.
However, revenue rose 4% to RM7.07 billion compared with RM6.78 billion in the previous year's corresponding quarter thanks to its commercial segment.
The results of the group's operations are primarily influenced by petroleum product prices which have strong correlation to crude oil prices (Brent) and Malaysia's economic growth.
Brent price averaged at US$66.42 a barrel in the first quarter of 2018, which was higher than the full year average price for 2017 of US$54.27 a barrel. Despite this upward trend, the group expects the price to continue to be volatile.
"The volatility of oil price, economic growth and consumers' sentiment will have impact on the group's profitability. 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," said PetDag.