Petronas Dagangan Bhd Reports Strong 1Q Profit Growth Amid Global Uncertainties
Kuala Lumpur, May 23, 2025 — Petronas Dagangan Bhd (KL:PETDAG), a leading Malaysian company specializing in the extraction, processing, and distribution of petroleum products, has announced a robust 29.8% increase in net profit for the first quarter of 2025 (1QFY2025). The company’s financial performance reflects a strategic pivot towards its commercial segment, which has significantly bolstered its profitability.
The company’s net profit surged to RM293.50 million, up from RM226.04 million in the same quarter last year. This impressive growth was primarily driven by a 50% increase in profits from the commercial segment, which saw higher sales of Jet A1 aviation fuel and diesel. This segment’s success effectively offset a 3% decline in profits from the retail segment, which fell to RM191.5 million due to reduced demand for diesel and motor gasoline.
In addition to the commercial segment’s strong performance, Petronas Dagangan’s convenience segment, led by Mesra and Setel, also saw a 40% increase in profits. This growth underscores the company’s diversified approach to maintaining profitability across different market segments.
Despite the positive profit figures, Petronas Dagangan experienced a 3.2% decline in revenue, dropping to RM9.09 billion from RM9.39 billion in the previous quarter. This decrease was attributed to lower average selling prices and reduced sales volume, reflecting broader market challenges.
In response to its financial performance, Petronas Dagangan announced an interim dividend of 20 sen per share, up from 18 sen per share last year, amounting to RM198.69 million. This dividend will be paid on June 21, 2025.
Petronas Dagangan, which is 63.94% held by Petroliam Nasional Bhd, remains cautiously optimistic about the future. The company acknowledges global risks but is confident in its ability to achieve steady growth, supported by a strong economy and effective cost management strategies. It emphasizes the importance of excellent customer service and competitiveness as key drivers for long-term success.
As the company navigates ongoing global uncertainties, it continues to monitor potential indirect effects, particularly inflationary pressures on its supply chain. However, Petronas Dagangan remains optimistic about the resilience of the economic environment, which it believes will sustain its growth through steady consumer spending and robust investment activity.
In summary, Petronas Dagangan’s first-quarter results highlight its ability to adapt and thrive in a challenging market environment, setting a positive tone for its future endeavors.