KUALA LUMPUR: Petronas Dagangan Bhd (PetDag) maintains a cautiously optimistic outlook on its performance for the financial year ending Dec 31, 2023 (FY23) and continues to monitor global headwinds, as well as any changes to government policy.
Managing director and CEO Azrul Osman Rani said the outlook is supported by anticipation that the crude oil price is expected to average US$89 per barrel in 2023, while inflation and gross domestic product are forecast to moderate.
“Tourist arrivals, estimated to reach 9.6 million, and higher domestic demand would be the keys to our growth performance this year,“ he said at a press conference after the company’s AGM today.
Azrul said, “PetDag’s financial performance is a reflection of the robust efforts on our core businesses as well as the hard work and commitment of our people. We made strategic investments and pushed forward with a focused approach. We were able to meet the needs of our customers and deliver shareholder returns despite operating in a challenging market environment.
“The business results underscore our commitment in delivering high-quality offerings to make our customers’ everyday lives simpler and better. Whilst we remain cautious about the challenges that global headwinds may pose, we are confident and optimistic in our ability to adapt and navigate through them successfully,” he said.
For FY22, PetDag’s net profit rose to RM776.60 million compared with RM529.75 million in the year before, mainly contributed by higher gross profit from all segments following an increase in demand. Revenue expanded to RM36.75 billion from RM22.67 billion, the group said in a filing with Bursa Malaysia.
As part of its strategy to grow its non-fuel offerings, the company incorporated Mesra Retail & Cafe Sdn Bhd in 2021, which focuses on the food and beverage (F&B) business.
Mesra Retail & Cafe continued to drive and deliver results in the non-fuel business segment with a 24% increase in revenue, exceeding market and sector growth. The year saw rapid expansion of Mesra’s own-label products, which contributed 10% of the total chargeable sales on the back of encouraging customer demand. The business also achieved a key milestone through the launch and expansion of its F&B brand, Cafe Mesra.
In FY22, PetDag’s retail business registered its highest sales record, leveraging the strengths of its network and dealers, fuel product offerings and innovative digital solutions. It made further inroads into the non-fuel and green mobility space with the launch of an electric vehicle charging hub at Petronas Station Bandar Baru Ayer Hitam in November 2022.
In the same year, its commercial business saw revenue growth of 300% in the aviation segment. This upswing was attributed to the reopening of domestic and international borders as the tourism sector continued to gain momentum. It also continued to lead the sustainable aviation fuel offering in Malaysia through the refuelling of domestic and international passenger flights.
The liquefied petroleum gas (LPG) business sustained its overall market leadership in the household and commercial segments and expanded the reach of LPG cylinders to 91 Petronas stations and 160 Petronas@Mini Market outlets. PetDag also entered into a joint venture with Petros through the incorporation of PetrosNiaga as part of its plan to expand and grow its market presence in Sarawak.
PetDag said Setel continued to execute its strategies in four areas – fuel, mobility, e-commerce and fintech. To increase fuel adoption at Petronas retail stations, Setel launched its Apple watch app and rolled out features such as Cardless SmartPay, One Tap Fuelling and Setel Lite. Setel achieved an all-time-high gross merchandise value of RM1.8 billion, which is an 80% increase from 2021.
