Petronas Dagangan slips into the red on lower sales

Petronas Dagangan operates a chain of petrol stations in Malaysia.

KUALA LUMPUR: Petrol station operator Petronas Dagangan Bhd slipped into the red in the first quarter of 2020, recording a net loss of RM29.42 million compared with a net profit of RM291.20 million a year earlier.

“The group experienced challenging market conditions towards the end of the first quarter arising from the impact of the Covid-19 pandemic globally as well as the constraints of the local movement control order,” the company said.

Revenue declined to RM6.55 billion compared with RM7.81 billion in the same period last year, the company said in its quarterly results filing with Bursa Malaysia today.

It said the RM1.25 billion drop in group revenue was caused by a 4% fall in overall sales volume in both the retail and commercial segments and 3% drop in average selling prices.

The loss was due mainly to lower gross profit, lower sales volume and higher operating expenses attributable to professional services costs and depreciation costs.

The board has declared an interim dividend of five sen per share amounting to RM49.67 million, down from an interim dividend of 15 sen per share in the same quarter last year which resulted in a payout of RM149.02 million.

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