KUALA LUMPUR (May 22): Petronas Dagangan Bhd's (PetDag) net profit jumped by 2.5 times to RM301.84 million in the first quarter ended March 31, 2023 (1QFY2023) from RM118.49 million posted a year ago, driven by higher gross profit from all segments, in line with higher volume sold.

Its earnings per share ballooned to 30.4 sen in 1QFY2023, from 11.9 sen in the previous corresponding quarter, the group’s filing with Bursa Malaysia showed.

PetDag said the better earnings were driven by the opening of international borders, as well as the festive season and school holidays in the first quarter of 2023, apart from cost and operational efficiencies.

Quarterly revenue rose 13.48% to RM8.65 billion in 1QFY2023, compared with RM7.62 billion a year before, on the back of higher sales volume and an increase in average selling prices.

The group declared an interim dividend of 15 sen per share, payable on June 20.

The group receivables, however, dropped 8.86% to RM3.67 billion as at March 31, 2023, from RM4.03 billion as at Dec 31, 2022.

Consequently, the group’s total assets also fell by 3.31% to RM 10.88 billion year-on-year, against RM11.26 billion last year.

On a quarterly basis, the group’s net profit swelled from RM144.46 million in 4QFY2022, while revenue fell 8.98% from RM9.5 billion in the immediate preceding quarter.

PetDag said the lower quarter-on-quarter revenue was due to the less favourable Brent crude oil prices, which averaged at US$81.17 per barrel (bbl) against the corresponding quarter last year of US$101.40/bbl, mainly due to challenging global economic conditions and inflation worries that sparked fears which would impact future oil demand.

Moving forward, PetDag, in which Petroliam Nasional Bhd (Petronas) controls a 63.92% stake, said it will remain cautiously optimistic and continue to strengthen its core and business growths, leveraging digital platforms with the aim of providing superior value proposition to customers.

“Economic recovery, upcoming festive seasons and revival of the tourism industry that continued in 2023, are expected to have positive impact on the overall group’s performance, especially for retail and commercial segments,” it said.

At the closing bell on Monday (May 22), PetDag’s share price dropped 20 sen or 0.88% to RM22.40, valuing the group at RM22.25 billion.