PETDAG (5681) - PetDag 4Q net profit plunges 99.7%, declares 22 sen special dividend
KUALA LUMPUR (Feb 12): Petronas Dagangan Bhd (PetDag), a 69.86%-owned subsidiary of Petroliam Nasional Bhd, saw its net profit for the fourth quarter ended Dec 31, 2014 (4QFY14) plunge 99.7% to RM445,000 from RM151.32 million a year ago, mainly due to a decrease in sales volume and average selling price.
Revenue for 4QFY14 also dropped 11% to RM7.45 billion from RM8.39 billion in 4QFY13.
PetDag's (fundamental: 1.8; valuation: 0.9) operating profit was lower at RM16.2 million from the year-ago period as a result of lower gross profit from the group's retail segment. Earnings per share (EPS) for 4QFY14 dropped to 0.04 sen from 15.20 sen as a result of lower profit.
Nevertheless, the group declared a special dividend of 22 sen per share for the quarter, payable on March 27.
For the full year (FY14), PetDag's net profit fell 38.2% to RM501.57 million from RM811.75 million the previous year due to the lower gross margin attributed to the steep decline in global crude oil prices.
Revenue fell slightly by RM924,000 to RM32.34 billion from FY13, largely due to the decrease in sales volume. EPS for FY14 was lower at 50.5 sen from 81.7 sen in FY13.
In a statement today, PetDag managing director and chief executive officer Mohd Ibrahimnuddin Mohd Yunus said the market environment for the oil and gas (O&G) business has been "very challenging" so far.
"The downward trend of crude oil prices and decrease in sales volume have impacted our overall performance,” he said.
"We have interventions in place, to address the current cost environment including managing operating expenses through cost reduction efforts, inventory optimisation, enhancing supply and distribution efficiency and re-prioritisation of projects,” he added.
The overall retail business saw a decrease in revenue of 8% (in FY14), mainly impacted by a decrease in sales volume for diesel, which was impacted by softening demand from the industry due to cautious consumer spending as well as regulatory and policy changes," said Ibrahimnuddin in the statement.
For the commercial segment, the decrease in gross profit by 2% in FY14 was mainly due to lower sales volume by 7% against the previous year.
The lubricants business achieved an increase in sales volume and revenue by 5% due to ongoing promotional and marketing activities.
On prospects, PetDag said the economic and business environment will continue to be challenging.
PetDag shares closed 1.10 sen or 6.08% lower at RM17, bringing a market capitalisation of RM17.1 billion.
http://www.theedgemarkets.com
KUALA LUMPUR (Feb 12): Petronas Dagangan Bhd (PetDag), a 69.86%-owned subsidiary of Petroliam Nasional Bhd, saw its net profit for the fourth quarter ended Dec 31, 2014 (4QFY14) plunge 99.7% to RM445,000 from RM151.32 million a year ago, mainly due to a decrease in sales volume and average selling price.
Revenue for 4QFY14 also dropped 11% to RM7.45 billion from RM8.39 billion in 4QFY13.
PetDag's (fundamental: 1.8; valuation: 0.9) operating profit was lower at RM16.2 million from the year-ago period as a result of lower gross profit from the group's retail segment. Earnings per share (EPS) for 4QFY14 dropped to 0.04 sen from 15.20 sen as a result of lower profit.
Nevertheless, the group declared a special dividend of 22 sen per share for the quarter, payable on March 27.
For the full year (FY14), PetDag's net profit fell 38.2% to RM501.57 million from RM811.75 million the previous year due to the lower gross margin attributed to the steep decline in global crude oil prices.
Revenue fell slightly by RM924,000 to RM32.34 billion from FY13, largely due to the decrease in sales volume. EPS for FY14 was lower at 50.5 sen from 81.7 sen in FY13.
In a statement today, PetDag managing director and chief executive officer Mohd Ibrahimnuddin Mohd Yunus said the market environment for the oil and gas (O&G) business has been "very challenging" so far.
"The downward trend of crude oil prices and decrease in sales volume have impacted our overall performance,” he said.
"We have interventions in place, to address the current cost environment including managing operating expenses through cost reduction efforts, inventory optimisation, enhancing supply and distribution efficiency and re-prioritisation of projects,” he added.
The overall retail business saw a decrease in revenue of 8% (in FY14), mainly impacted by a decrease in sales volume for diesel, which was impacted by softening demand from the industry due to cautious consumer spending as well as regulatory and policy changes," said Ibrahimnuddin in the statement.
For the commercial segment, the decrease in gross profit by 2% in FY14 was mainly due to lower sales volume by 7% against the previous year.
The lubricants business achieved an increase in sales volume and revenue by 5% due to ongoing promotional and marketing activities.
On prospects, PetDag said the economic and business environment will continue to be challenging.
PetDag shares closed 1.10 sen or 6.08% lower at RM17, bringing a market capitalisation of RM17.1 billion.
http://www.theedgemarkets.com
