KUALA LUMPUR (Nov 23): Petronas Dagangan Bhd (PetDag) said its net profit for the third quarter ended Sept 30, 2023 (3QFY2023) declined 33.06% to RM184.72 million from RM275.97 million in the same period last year, amid an increase in operating expenditure.

The lower earnings were also due to the recognition of a gain on disposal of the group's liquified petroleum gas (LPG) business in Sarawak in 3QFY2022.

Earnings per share fell to 18.6 sen from 27.8 sen, PetDag's filing with Bursa Malaysia showed on Thursday.

Revenue slipped 2.12% to RM9.92 billion from RM10.13 billion in 3QFY2022, on the back of higher sales volume offset by a decline in average selling prices.

On a quarter-on-quarter basis, the group’s net profit came in lower from RM184.72 million posted in 2QFY2023 while revenue rose 11.26% from RM8.92 billion.

For the first nine months of the year, the group’s net profit climbed 20.59% to RM762.27 million from RM632.14 million in the same period last year. Nine-month revenue rose by 0.82% to RM27.47 billion from RM27.25 billion.

The group declared an interim dividend of 20 sen per share, to be paid on Dec 22.

PetDag expects to sustain its performance until year end as it continues to strengthen its core business and foster business growth, amid cautious outlook from potential global headwinds.

The group said it aims to enhance its business segments by focusing on customer service and innovation in the retail segment, capitalising on the growth of air travel industry in the commercial segment and expanding the lubricants segment's customer base and maintaining optimism in the LPG segment.

“PetDag will intensify its efforts in growing its non-fuel business, leveraging technology as well as embracing digital transformation and innovation. This includes upholding a diverse portfolio of products and services at Kedai and Café Mesra.

“Following the recent national budget announcement on the implementation of targeted subsidies for electricity and diesel in 2024, PetDag is committed to supporting the roll-out and providing seamless customer experience,” it added.

Shares in PetDag finished six sen or 0.26% lower at RM22.86, giving the group a market capitalization of RM22.71 billion.