Sslee blog
Petronm’s 64th AGM questions
Dear MR. MANOJ DEVADASAN
General Counsel / Company Secretary / Manager-Human Resources/Compliance Officer
I would like to submit in advance my Petronm’s 64th AGM questions as below.
First and foremost, my congratulations to the BOD and Management team for another profitable year 2022 with increased EPS of 111.3 cents (FY 2022) Vs 88.3 cents (FY2021).
My many thanks and heartfelt gratitude to the BOD for giving increase dividend of 25 cents (FY2022) Vs 20 cents (FY 2021)
Question 1: I would like to make a request to the BOD for FY2023 please kindly consider splitting the dividend payment into 2 with interim dividend payment on Dec 2023 and final dividend on July 2024?
FY2022 annual report page 15: A newly opened station in Seremban 2 featuring the new design.
Question 2: What is the total cost for this newly opened station in Seremban 2, the expected IRR and payback period?
FY2022 annual report page 102:
Cash flows from investing activities: 2022 RM’000: 2021 RM’000
Acquisition of investment properties: (10,194): (7,047)
Acquisition of property, plant and equipment: (52,835): (147,706)
Payment for long-term assets: (5,248): (4,812)
Proceeds from disposal of property, plant and equipment: 87: 835
Proceeds from disposal of right-of-use assets: - :140
Net cash used in investing activities: (68,190): (158,590)
Question 3: FY2022 Net cash used in investing activities of RM 68,190,000, how much is used for retail service stations and for how many retail service stations?
Question 4: What is the investing budget for FY2023 and for building how many retail service stations?
From quarter 1 2023 financial report: Jan to March 2023
Cash flows from investing activities: RM’000
Acquisition of investment properties: (4,552)
Acquisition of property, plant and equipment: (10,961)
Payment for long-term assets: (3,029)
Capital commitments as at 31-03-2023: RM’000
Contracted but not provided for
Plant and equipment: 30,032
Investment properties: 21,806
Question 5: Since the big ticket investments were done in 2021(DHT facility and two 250,000-barrel product tanks) will the BOD consider a higher dividend payout from the EPS for FY2023?
FY2022 annual report page 139:
2022 RM’000: 2021 RM’000
Rental income: 47,562: 40,562
Question 6: Where does this rental income come from, reasons for 17% yearly increase from RM 40,562,000 FY 2021 to RM 47,562,000 FY 2022 and what is the expected rental income for FY 2023?
FY2022 annual report page 169: TOP 10 PROPERTIES AS AT 31 DECEMBER 2022
Question 7: Will the Management kindly provide us the full list of properties as at Dec 2022 or tell us where we can get a copy of the full list?
From FY 2022 quarterly financial report:
Quarter 1 2022: Gross profit RM 238,869,000, PBT RM 143,753,000. Loss on derivatives: 230,011,000
Quarter 2 2022: Gross profit: RM 415,620,000, PBT RM 240,671,000. Derivatives realized loss: RM 207,862,000. Unrealized loss; RM 166,799,000
Quarter 3 2022: Gross profit RM (136,556,000), PBT RM (29,137,000). Derivatives realized gain: RM 139,957,000. Unrealized gain: RM 7,588,000
Quarter 4 2022: Gross profit: RM 14,766,000, PBT RM (54,408,000). Loss on derivatives: RM 63,070,000
From Petronm 63th AGM minutes answer to question 18 and 21 on derivatives:
It is not a disadvantage for the company to have derivatives losses since there are corresponding higher physical inventory holding gains which benefit our gross profit.
There will be corresponding higher inventory holding gains even if there will be derivatives losses.
Your above statement on derivatives (loss)/gain is true for quarter 1, quarter 2 and quarter 3 but not on quarter 4.
Question 8: Please explain why quarter 4 loss on derivatives of RM 63,070,000 is much higher than the gross profit of RM 14,766,000?
Question 9: What were the volume (barrels) commodity swap contracts and average USD gain/(loss) per barrel matured on quarter 1, quarter 2, quarter 3 and quarter 4 FY2022?
FY2022 annual report page 167 & 168
As at 20 March 2023
THIRTY LARGEST SHAREHOLDERS
No. of Units Held: % of Issued Capital
TOTAL: 219,257,798: 81.206
Question 10: With NOSH of 270,000,000 only about 50,742,202 units were held outside of these 30 largest shareholders. Would the BOD consider one to one bonus issues to increase the NOSH so that more people will be able to participate in Petronm share ownerships and become loyal supporters and customers of Petron Service Station?
Thank you
Have a good day
Best Regards
Lee Soon Sheng
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Discussions
Be the first to like this. Showing 17 of 17 comments
I3lurker,
Are you sure these are the queations and not the answers to my 10 questions?
2023-05-27 17:45
This is the usual Malaysian way.
Its called KBK
The Questions are given
and then Answers are supplied.
You give your Questions to BOD
then give my Answers to BOD
BOD give you my Answers to you.
QED
This way the entire BOD graduated with First Class Honours.
2023-05-29 12:43
My questions are actually trying to avoid the P&C by engaging the BOD and Management team to talk a little bit more on Petronm prospects in optimising resources and pursuing better yielding investments in retail network expansion.
2023-05-29 13:02
petron is actually deretailing.
petron outlets that used to have atm got rid of their atm, unwilling to pay rental.
petron outlets that used to sell fresh food got rid of their fresh food unwilling to have more SKU.
petron outlets total sku had reduced drastically such that many things you want to buy you can ONLY get at Petronas petrol station
petron outlets are anti-Chinese by totally refusing to sell Chinese language newspapers.
Petronas outlets are pro-Chinese coz many selections of Chinese language newspapers.
In any emergency, please ONLY go to Petronas outlets coz they have complete selection of car repair items.
2023-05-29 13:06
I3lurker,
Petchem quarter ended 31 March result out
Save by Fertilisers and Methanol profit. Look like need to wait another very bad quarter to collect Petchem below Philip cost.
Segment profit for the period 1
Individual quarter ended 31 March
In RM Mil 2023: 2022
Restated
Olefins and Derivatives: 170: 733
Fertilisers and Methanol: 533: 1,172
Specialties: (29): 163
Others2: (138): 4
Total 536: 2,072
2023-05-29 13:25
Normal people are externally motivated.
The super rich are internally motivated.
so when Philip jumps from KLCC after losing all his money, you will also jump from KLCC?
2023-05-29 13:35
I3lurker,
KLCC already outdated, the newly one "The Merdeka 118" will be the new landmark.
2023-05-29 13:57
By the way I am very motivated to collect Pchem below Philip cost.
Methanol price
Jan: USD 389
FEB: USD 376
March: USD 361
April: USD 353
May: USD 341
Urea
Jan: USD 444
Feb: USD 358
March: USD 314
Apri: USD 314
2023-05-29 15:05
bursa is waste of time and talent...................... wall Street and HK is where knowledge is rewarded.
2023-05-29 16:40
qqq3,
You are right. People like Philip, Icon888 and choivo capital already migrate to US market.
2023-05-29 17:02
If you have bought Tesla at beginning of year, you are already up 78.70 %
193.17 USD +85.07 (78.70%)year to date
2023-05-29 17:09
at 190 tesla is still ok .........................
legacy autos having a very very hard time in catching up. I mean China will do well in EV but there will also be non China brands and it will be tesla.
2023-05-29 19:01
Posted by i3lurker > 1 hour ago | Report Abuse
Tesla cannot compete with EVs from VW, Merc & Porsche
============
and that is the point.........................I have changed my opinion in recent months. All legacy auto companies have big problems and cannot compete with ev companies.
2023-05-30 00:04
Thanks SSLee....in your efforts for minority shareholders..Great work. Maybe Kenaga is quietly getting their clients to buy Petron too...
2023-06-06 16:33
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Please help to submit my Questions to BOD as well
List of my Questions to help shareholders
Question 1
Please pay dividend once every 5 years to increase savings from processing fees.
or better still no dividends and use cash to grow the company
Question 2
Company should keep all financial info as P&C
Question 3
Company should keep all financial info as P&C
Question 4
Company should keep all financial info as P&C
Question 5
Will the company consider no dividends to help company grow faster
Question 6
Company should keep all financial info as P&C
Question 7
Company should keep all financial info as P&C to prevent fraudulent transfer at land office.
Question 8
Company should keep all financial info as P&C
Question 9
Company should keep all financial info as P&C
Question 10
Will company consider a share consolidation of 3 to 1 to reduce expenses of share registration services. Any savings always benefits shareholders.
Will also help keep share price more stable for the benefit of existing shareholders
2023-05-27 14:29