KUALA LUMPUR: Petronas Dagangan Bhd
(PDB) remains cautiously optimistic about its core businesses and non-fuel segment for the financial year 2023 (FY2023).
Managing director and chief executive officer Azrul Osman Rani said the group would continue to monitor global headwinds and any policy changes that could impact on its operations.
"But rest assured, we have good systems, processes, and risk mitigations in place...So, you can expect the things that could be expected and what would happen.
"We also have our cash flow and liquidity consideration to ensure that we can withstand any unexpected turbulence. So, I would think, for 2023, we are cautiously optimistic about our prospects,” he told a media conference after the company’s 41st Annual General Meeting (AGM) today.
He said the crude oil price is expected to average at US$89 per barrel (US$1=RM4.44) in 2023, while the country’s gross domestic product and inflation numbers are forecast to moderate to 4.0 per cent and between 2.5 per cent and 3.0 per cent, respectively.
Azrul said tourist arrival, which is estimated to grow to 9.6 million, and higher domestic demand would be the key to its growth performance in 2023.
"In terms of jet fuel sales, we see more planes (flying). As is known, PDB has the biggest market share in terms of the sale of jet A-1 fuel. So just to compare the second half (2H) of 2019 with 2H 2022, it’s almost 80 per cent fully recovered in terms of aviation.
"Hence, this is the trend that we will continue (to see) and we will serve all our customers. The estimation of 9.6 million travellers this year compared to three million last year will translate to a higher volume (fuel),” he said.
For the financial year ended Dec 31, 2022 (FY2022), PDB’s net profit rose to RM776.60 million compared to RM529.75 million in the preceding year, while revenue expanded to RM36.75 billion from RM22.67 billion previously.
The company also declared a total dividend of 76 sen per ordinary share, which represents a 100 per cent payout ratio.
"PDB’s strong 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,” said Azrul.
In 2022, PDB’s retail business registered the highest sales record leveraging the strengths of its network and dealers, world-class fuel product offerings and innovative digital solutions.
The company made further inroads into the non-fuel and green mobility space with the launch of Malaysia’s first-of-its-kind electric vehicle charging hub located at Petronas Station Bandar Baru Ayer Hitam in November 2022.
In the same year, the commercial business saw a remarkable revenue growth of approximately 300 per cent in the aviation segment, which was attributed to the reopening of domestic and international borders as the tourism sector continued to gain momentum.
Meanwhile, the liquefied petroleum gas (LPG) business sustained its overall market leadership in the household and commercial segments and continued to provide greater convenience to customers by expanding the reach of LPG cylinders to another 91 Petronas stations and 160 Petronas @Mini Market outlets.
Mesra Retail and Cafe Sdn Bhd continued to drive and deliver commendable results in the non-fuel business segment with an increase in revenue by 24 per cent, exceeding market and sector growth.
"The business also achieved a key milestone through the launch and expansion of our food and beverage brand, Cafe Mesra, which has operationalised more than 50 outlets in Peninsular Malaysia since its launch in July 2022,” said Azrul. - Bernama
