For Second Quarter Ended 30 June 2020
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
Tthe Company ) is pleased to announce the following Unaudited Condensed Consolidated Financial Statements for PDB Group for the second quarter ended 30 June 2020 which should be read in conjunction with the accompanying explanatory notes on pages 7 to 21.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at | As at | |||
30 June | 31 December | |||
In RM'000 | Note | 2020 | 2019 | |
ASSETS | ||||
Property, plant and equipment | 3,993,028 | 4,134,901 | ||
Investments in associates | 1,562 | 1,456 | ||
Investments in joint ventures | 20,006 | 21,561 | ||
TOTAL NON-CURRENT ASSETS | 4,014,596 | 4,157,918 | ||
Trade and other inventories | 514,030 | 796,819 | ||
Trade and other receivables | 1,133,928 | 1,565,011 | ||
Fund investment | - | 51,004 | ||
Cash and cash equivalents | 2,397,192 | 3,425,500 | ||
TOTAL CURRENT ASSETS | 4,045,150 | 5,838,334 | ||
TOTAL ASSETS | B1 | 8,059,746 | 9,996,252 | |
EQUITY | ||||
Share capital | 993,454 | 993,454 | ||
Reserves | 4,512,153 | 4,982,490 | ||
Total Equity Attributable to Shareholders | 5,505,607 | 5,975,944 | ||
of the Company | ||||
Non-controlling interests | 35,335 | 35,451 | ||
TOTAL EQUITY | B1 | 5,540,942 | 6,011,395 | |
LIABILITIES | ||||
Borrowings | B8 | 123,700 | 168,653 | |
Deferred tax liabilities | 95,865 | 100,318 | ||
Other long term liabilities and provisions | 28,485 | 28,473 | ||
TOTAL NON-CURRENT LIABILITIES | 248,050 | 297,444 | ||
Trade and other payables | 2,115,515 | 3,440,211 | ||
Borrowings | B8 | 115,936 | 165,502 | |
Taxation | 39,303 | 81,700 | ||
TOTAL CURRENT LIABILITIES | 2,270,754 | 3,687,413 | ||
TOTAL LIABILITIES | B1 | 2,518,804 | 3,984,857 | |
TOTAL EQUITY AND LIABILITIES | 8,059,746 | 9,996,252 | ||
Net assets per share attributable to ordinary | ||||
equity holders of the Parent (RM) | 5.54 | 6.02 |
The Unaudited Condensed Consolidated Statement of Financial Position should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2019 and accompanying explanatory notes attached to the Interim Condensed Consolidated Financial Statements.
2
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME/(EXPENSE)
In RM'000
Revenue
Operating profit/(loss)
Finance cost
Share of (loss)/profit after tax of equity accounted associates and joint ventures
Profit/(Loss) before taxation
Taxation
PROFIT/(LOSS) FOR THE PERIOD
Other comprehensive (expenses)/ income
Items that may be reclassified subsequently to profit or loss
Exchange differences arising from translation of financial statements of foreign operations
TOTAL COMPREHENSIVE INCOME/(EXPENSE) FOR THE PERIOD
(Loss)/ Profit attributable to: Shareholders of the Company Non-controllinginterests
PROFIT/(LOSS) FOR THE PERIOD
Total comprehensive income/(expense) attributable to:
Shareholders of the Company
Non-controlling interests
TOTAL COMPREHENSIVE INCOME/ (EXPENSE) FOR THE PERIOD
Earnings/ (Loss) per ordinary share - basic (sen)
Individual quarter ended | Cumulative quarter ended | ||||||
30 June | 30 June | ||||||
Note | 2020 | 2019 | 2020 | 2019 | |||
B1 | 2,931,750 | 7,606,229 | 9,485,661 | 14,692,134 | |||
5,667 | 240,369 | (8,613) | 627,863 | ||||
(3,952) | (5,008) | (8,524) | (10,462) | ||||
(549) | 2,267 | (124) | 3,213 | ||||
B1 | 1,166 | 237,628 | (17,261) | 620,614 | |||
B6 | 505 | (63,249) | (8,766) | (152,651) | |||
B13 | 1,671 | 174,379 | (26,027) | 467,963 | |||
(110) | 2,899 | 2,628 | 635 | ||||
1,561 | 177,278 | (23,399) | 468,598 | ||||
3,510 | 172,751 | (25,911) | 463,947 | ||||
(1,839) | 1,628 | (116) | 4,016 | ||||
1,671 | 174,379 | (26,027) | 467,963 | ||||
3,400 | 175,650 | (23,283) | 464,582 | ||||
(1,839) | 1,628 | (116) | 4,016 | ||||
1,561 | 177,278 | (23,399) | 468,598 | ||||
B11 | 0.4 | 17.4 | (2.6) | 46.7 |
The Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income/(Expense) should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2019 and accompanying explanatory notes attached to the Interim Condensed Consolidated Financial Statements.
3
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to Shareholders of the Company
Non- DistributableDistributable
At 1 January 2019
Exchange difference arising from translation of financial statements of foreign operations
Total other comprehensive expense for the period
Profit for the period
Total comprehensive income for the period
Dividends paid At 30 June 2019
At 1 January 2020
Exchange difference arising from translation of financial statements of foreign operations
Total other comprehensive income for the period
Loss for the period
Total comprehensive income/(expense) for the period
Dividends paid At 30 June 2020
Foreign | |||||||
Currency | Non- | ||||||
Share | Translation | Capital | Retained | Controlling | Total | ||
Capital | Reserves | Reserves | Profits | Total | Interests | Equity | |
993,454 | (18,204) | (18,732) | 4,886,040 | 5,842,558 | 31,026 | 5,873,584 | |
- | 635 | - | - | 635 | - | 635 | |
- | 635 | - | - | 635 | - | 635 | |
- | - | - | 463,947 | 463,947 | 4,016 | 467,963 | |
- | 635 | - | 463,947 | 464,582 | 4,016 | 468,598 | |
- | - | - | (397,382) | (397,382) | - | (397,382) | |
993,454 | (17,569) | (18,732) | 4,952,605 | 5,909,758 | 35,042 | 5,944,800 | |
993,454 | (18,935) | (18,732) | 5,020,157 | 5,975,944 | 35,451 | 6,011,395 | |
- | 2,628 | - | - | 2,628 | - | 2,628 | |
- | 2,628 | - | - | 2,628 | - | 2,628 | |
- | - | - | (25,911) | (25,911) | (116) | (26,027) | |
- | 2,628 | - | (25,911) | (23,283) | (116) | (23,399) | |
- | - | - | (447,054) | (447,054) | - | (447,054) | |
993,454 | (16,307) | (18,732) | 4,547,192 | 5,505,607 | 35,335 | 5,540,942 | |
The Unaudited Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2019 and accompanying explanatory notes attached to the Interim Condensed Consolidated Financial Statements.
4
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||
Cumulative quarter ended | |||||
30 June | |||||
In RM'000 | Note | 2020 | 2019 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
(Loss)/ Profit before taxation | (17,261) | 620,614 | |||
Adjustments for: | |||||
Depreciation and amortisation | 255,393 | 224,455 | |||
Net impairment of impairment loss on trade and other | 6,309 | 215 | |||
receivables | |||||
Share of loss/(profit) after tax of equity accounted associates | |||||
and joint ventures | 124 | (3,213) | |||
Net loss/ (gain) on disposal of property, plant and equipment | 300 | (17,866) | |||
Interest income | (37,797) | (55,690) | |||
Finance cost | 8,524 | 10,462 | |||
Net inventories (written-back)/ written off | (638) | 79 | |||
Other non-cash items | (2,079) | 22 | |||
Operating profit before changes in working capital | 212,875 | 779,078 | |||
Inventories | 283,427 | 34,729 | |||
Trade and other receivables | 424,774 | 501,442 | |||
Trade and other payables | (1,323,085) | 836,865 | |||
Cash (used in)/ generated from operations | (402,009) | 2,152,114 | |||
Taxation paid | (56,592) | (136,694) | |||
Net cash (used in)/ generated from operating activities | B1 | (458,601) | 2,015,420 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Interest income | 37,797 | 55,690 | |||
Net withdrawal/ (placement) of fund investment | 51,004 | (1,004) | |||
Purchase of property, plant and equipment | (113,694) | (197,127) | |||
Proceeds from disposal of property, plant and equipment | - | 21,942 | |||
Net cash used in investing activities | B1 | (24,893) | (120,499) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Dividends paid | (447,054) | (397,382) | |||
Net repayment of revolving credit facility | B8 | (5,549) | (6,326) | ||
Repayment of Islamic financing facilities | B8 | (9,795) | (9,391) | ||
Repayment of lease liabilities | B8 | (79,974) | (53,802) | ||
Interest paid on revolving credit | B8 | (27) | (49) | ||
Profit margin paid for Islamic financing facilities | B8 | (532) | (1,063) | ||
Interest paid on lease liabilities | B8 | (7,965) | (9,350) | ||
Net cash used in financing activities | B1 | (550,896) | (477,363) | ||
5
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | ||||
Net (decrease)/ increase in cash and cash equivalents | (1,034,390) | 1,417,558 | ||
Net foreign exchange differences | 6,082 | 143 | ||
Cash and cash equivalents at beginning of | ||||
the period | 3,425,500 | 2,187,891 | ||
Cash and cash equivalents at end of the period | 2,397,192 | 3,605,592 | ||
The Unaudited Condensed Consolidated Statement of Cash Flows should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2019 and accompanying explanatory notes attached to the Interim Condensed Consolidated Financial Statements.
6
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
PART A EXPLANATORY NOTES PURSUANT TO MFRS 134
A1 BASIS OF PREPARATION
The condensed financial statements have been prepared using historical cost basis except for certain financial assets and financial liabilities that are stated at fair value.
The condensed financial statements are unaudited and have been prepared in accordance with IAS 34 Interim Financial Reporting, MFRS 134 Interim Financial Reporting and paragraph 9.22 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad. They should be read in conjunction with the Audited Financial Statements and the accompanying notes for the year ended 31 December 2019. The explanatory notes attached to the condensed financial statements provide an explanation of events and transactions that are significant to the understanding of the changes in the financial position and performance of the Group since the year ended 31 December 2019.
Within the context of these financial statements, the Group comprises the Company and its subsidiaries, and the
Grou | its associates and joint ventures as at and for the quarter ended 30 June 2020. |
A2 SIGNIFICANT ACCOUNTING POLICIES
Except as described below, the same accounting policies and methods of computation are followed in the condensed consolidated financial statements as compared with the consolidated financial statements for the year ended 31 December 2019.
As of 1 January 2020, the effective for annual years beginning on or after 1 January 2020.
Amendments to MFRS 3 | Business Combinations (Definition of a Business) |
Amendments to MFRS 7 | Financial Instrument: Disclosures - Interest Rate Benchmark Reform |
Amendments to MFRS 9 | Financial Instrument |
Amendments to MFRS 101 | Presentation of Financial Statements (Definition of Material) |
Amendments to MFRS 108 | Accounting Policies, Changes in Accounting Estimates and Errors |
(Definition of Material) | |
Amendments to MFRS 139 | Financial Instrument: Recognition and Measurement |
The initial application of the above pronouncements did not have any material impact to the consolidated financial statements of the Group.
The Group has also early adopted the Amendment to MFRS 16 Leases (Covid-19 Related Rent Concessions) issued by MASB in June 2020, in response to the Covid-19 pandemic. The amendment is effective for annual periods beginning on or after 1 June 2020.
The adoption of these pronouncements did not have a significant impact to | consolidated financial |
statements. |
A3 AUDIT REPORT OF PRECEDING ANNUAL FINANCIAL STATEMENTS
There was no qualified audit report issued by the auditors in the annual financial statements for the year ended 31 December 2019.
A4 SEASONAL OR CYCLICAL FACTORS
The Group's operations in relation to sales volume are not significantly affected by seasonal or cyclical fluctuations of the business/industry.
A5 EXCEPTIONAL ITEMS
There were no exceptional items during the quarter under review.
7
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
PART A EXPLANATORY NOTES PURSUANT TO MFRS 134
A6 MATERIAL CHANGES IN ACCOUNTING ESTIMATES
There were no material changes in estimates of the amounts reported in the most recent annual financial statements of the Group for the year ended 31 December 2019 that may have a material effect in the current quarter results.
A7 CAPITAL COMMITMENTS
Outstanding capital commitments in respect of capital expenditure at financial position date not provided for at the end of each reporting period are as follows:
As at | As at | ||
30 June | 31 December | ||
2020 | 2019 | ||
Approved and contracted for | 119,614 | 34,209 | |
Approved but not contracted for | 530,024 | 215,258 | |
649,638 | 249,467 | ||
A8 DEBT AND EQUITY SECURITIES
There were no issuance, cancellations, repurchases, resale and repayments of debt and equity securities for the quarter under review, except as disclosed in note B8.
A9 DIVIDENDS PAID
During the 6 months period ended 30 June 2020, the following dividend payments were made:
- An interim dividend of 25 sen per ordinary share amounting to RM248.4 million and a special dividend of 15 sen per ordinary share amounting to RM149.0 million for the quarter ended 31 December 2019 to shareholders on 26 March 2020 (Quarter 1 2019: an interim dividend of 25 sen per ordinary share amounting to RM248.4 million for the quarter ended 31 December 2018).
- An interim dividend of 5 sen per ordinary share amounting to RM49.7 million for the quarter ended 31 March 2020 was paid to shareholders on 17 June 2020 (Quarter 2 2019: an interim dividend of 15 sen per ordinary share amounting to RM149.0 million for the quarter ended 31 March 2019).
A10 OPERATING SEGMENTS
ers. Each reportable segment offers
different services and require different marketing strategies.
of the Company, reviews internal management reports at least on a quarterly basis.
• | Retail | consist of sales and purchase of petroleum products to the retail sector |
• | Commercial | consist of sales and purchase of petroleum products to the commercial sector |
• | Others | comprise mainly aviation fuelling services, technical services and and business |
activities other than retail and commercial segments |
Revenues derived from petroleum products are predominately sold to the retail and commercial sectors in Malaysia which have been disclosed in the Operating Segment. In this respect, no further disaggregation of revenue is presented.
8
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
PART A EXPLANATORY NOTES PURSUANT TO MFRS 134
Results for quarter ended 30 June | ||||
00 | 2020 | |||
Business Segments | Retail | Commercial | Others | Group |
Revenue | 5,226,150 | 4,252,307 | 7,204 | 9,485,661 |
Depreciation and amortisation | 186,903 | 51,089 | 17,401 | 255,393 |
Other income | 156,211 | 26,435 | 2,858 | 185,504 |
Operating (loss)/ profit for | (59,967) | 71,838 | (20,484) | (8,613) |
reportable segments | ||||
Finance cost | (3,627) | (1,248) | (3,649) | (8,524) |
Share of loss after tax of equity accounted | ||||
associates and joint ventures | (124) | |||
Loss before taxation | (17,261) | |||
2019 | ||||
Business Segments | Retail | Commercial | Others | Group |
Revenue | 7,506,867 | 7,172,544 | 12,723 | 14,692,134 |
Depreciation and amortisation | 167,192 | 43,732 | 13,531 | 224,455 |
Other income | 187,620 | 24,247 | 293 | 212,160 |
Operating profit for | 343,294 | 277,584 | 6,985 | 627,863 |
reportable segments | ||||
Finance cost | (4,620) | (1,718) | (4,124) | (10,462) |
Share of profit after tax of equity accounted | ||||
associates and joint ventures | 3,213 | |||
Profit before taxation | 620,614 | |||
9
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
PART A EXPLANATORY NOTES PURSUANT TO MFRS 134
A11 VALUATIONS OF PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment except for freehold land are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Freehold land is stated at cost less accumulated impairment losses, if any.
A12 CONTINGENCIES | |||||
Group | |||||
2020 | 2019 | ||||
An award in favour of a subsidiary was issued by the arbitrator | |||||
in 2018 following an arbitration proceeding, which allowed | |||||
additional costs and expenses for restructuring works at one of | |||||
the subsidi | . The quantum to be paid following | ||||
the award as of the financial period date is pending settlement | |||||
negotiation between the parties. | 26,662 | 26,662 |
No provision has been made on the above contingency in the quarterly report up to reporting date. There were no material contingent liabilities since the last consolidated statement of financial position as at 31 December 2019.
A13 RELATED PARTY TRANSACTIONS
There were no significant transactions with related party in addition to the related party transactions disclosed in the Audited Financial Statements for the year ended 31 December 2019.
10
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
PART A EXPLANATORY NOTES PURSUANT TO MFRS 134
A14 FAIR VALUE INFORMATION
The carrying amounts of cash and cash equivalents and short term receivables and payables reasonably approximate their fair values due to their relative short term nature of these financial instruments.
Fair values are categorised into different levels in a fair value hierarchy based on the input used in the valuation technique as follows:
- Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities.
- Level 2 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
- Level 3 Inputs for the asset or liability that are not based on observable market data (unobservable input).
The fair value of an asset to be transferred between levels is determined as of the date of the event or change in circumstances that caused the transfer.
Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the prevailing rate of interest charged on the respective loans at the end of the reporting period.
The following table analyses financial instruments not carried at fair value for which fair value is disclosed, together with their fair values and carrying amounts shown in the Consolidated Statement of Financial Position.
Fair value of | ||||
financial | ||||
instruments not | ||||
carried at fair value | ||||
In RM'000 | Level 3 | Carrying | ||
amount | ||||
Group | ||||
30 June 2020 | ||||
Financial Liabilities | ||||
Islamic financing facilities | 19,164 | 19,961 | ||
Group | ||||
31 December 2019 | ||||
Financial Liabilities | ||||
Islamic financing facilities | 28,131 | 29,756 | ||
Revolving credit facility | 5,312 | 5,466 | ||
33,443 | 35,222 | |||
11
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
PART B EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF MAIN MARKET LISTING REQUIREMENT
OF BURSA MALAYSIA SECURITIES BERHAD
B1 FINANCIAL PERFORMANCE | ||||
(a) Highlight on Consolidated Statement of Financial Position | ||||
As at | As at | |||
30 June | 31 December | Variance | ||
In RM'000 | 2020 | 2019 | (%) | |
Total assets | 8,059,746 | 9,996,252 | (19) | |
Total equity | 5,540,942 | 6,011,395 | (8) | |
Total liabilities | 2,518,804 | 3,984,857 | (37) | |
Return on equity (%) | (0.9) | 14.0 | (>100) |
Total assets decreased by RM1,936.5 million, mainly due to lower cash and cash equivalents by RM1,028.3 million and trade and other receivables by RM RM431.0 million, in line with lower cash and credit sales and also special dividend payment in Q1 2020.
Total liabilities decreased by RM1,466.0 million, mainly due to lower trade and other payables in line with decrease in demand and lower purchase prices following declining MOPS prices trend which started from March and continued until April.
(b) Highlight on Consolidated Statement of Profit or Loss and Other Comprehensive Income/(Expense)
(i) | Cumulative quarter ended | |||
30 June | Variance | |||
In RM'000 | 2020 | 2019 | (%) | |
Revenue | 9,485,661 | 14,692,134 | (35) | |
(Loss)/ Profit before taxation | (17,261) | 620,614 | (>100) |
The Group experienced challenging market conditions in Q2 2020, due to impact of COVID 19 pandemic globally
as well as the implementation of | by the government of Malaysia. |
Group revenue decreased by RM5,206.4 million to RM9,485.7 million as overall sales volume declined by 22% in both Retail and Commercial segments particularly in the months of April and May. In addition, the reduction in average selling prices by 17% has further impacted the revenue.
M17.3 million as compared to a profit before taxation
of RM620.6 million mainly due to lower revenue, offset by lower operating expenses contributed by lower advertising and promotion activities.
12
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
PART B EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF MAIN MARKET LISTING REQUIREMENT
OF BURSA MALAYSIA SECURITIES BERHAD
(b) Highlight on Consolidated Statement of Profit or Loss and Other Comprehensive Income (continued)
(ii) | Individual quarter ended | |||
30 June | Variance | |||
In RM'000 | 2020 | 2019 | (%) | |
Revenue | 2,931,750 | 7,606,229 | (61) | |
Profit before taxation | 1,166 | 237,628 | (>100) |
Group revenue decreased by RM4,674.4 million to RM2,931.8 million due to decrease in sales volume by 39% and lower average selling prices of 37%.
The Group recorded a decrease in PBT of RM236.5 million mainly due to lower revenue, offset by lower operating expenses primarily contributed by lesser advertising and promotion activities and transportation costs respectively.
(c) Highlight on Consolidated Statement of Cash Flows | ||||
Cumulative quarter ended | ||||
30 June | Variance | |||
In RM'000 | 2020 | 2019 | (%) | |
Net cash (used in)/ generated from operating activities | (458,601) | 2,015,420 | (>100) | |
Net cash used in investing activities | (24,893) | (120,499) | (79) | |
Net cash used in financing activities | (550,896) | (477,363) | 15 |
Net cash used in operating activities was lower by RM2,474.0 million due to lower cash sales by RM5,002.0 million following lower volume as well as lower subsidy received by RM898.0 million. The decrease was offset by lower purchases of RM4,074.0 million.
Investing activities recorded lower cash outflow by RM95.6 million mainly due to lower capital expenditure incurred by RM83.4 million, decrease in fund investment of RM52.0 million, offset by nil proceeds from disposal of property, plant and equipment as compared to RM21.9 million recorded in the corresponding period.
Financing activities was higher by RM73.5 million mainly due to higher cash outflow following payment of special dividends to shareholders in Q1 2020.
13
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
PART B EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF MAIN MARKET LISTING REQUIREMENT
OF BURSA MALAYSIA SECURITIES BERHAD
B2 REVIEW OF GROUP PERFORMANCE
a) Performance of the current quarter against the corresponding quarter last year
Individual quarter ended | |||||||||
Group | Retail | Commercial | |||||||
June | June | Var | June | June | Var | June | June | Var | |
2020 | 2019 | % | 2020 | 2019 | % | 2020 | 2019 | % | |
Revenue | 2,931.8 | 7,606.2 | (61) | 1,827.8 | 3,874.1 | (53) | 1,102.8 | 3,726.1 | (70) |
Profit/ (Loss) | |||||||||
before | 1.2 | 237.6 | (>100) | 22.5 | 112.3 | (80) | (2.9) | 130.2 | (>100) |
taxation |
Retail Segment
Retail Segment revenue decreased by RM2,046.3 million mainly due to lower sales volume of 32% in tandem with low demand due to the implementation of MCO, as well as lower average selling prices by 30%.
PBT for the quarter was lower by RM89.8 million mainly due to decrease in revenue from Mogas and Diesel following declining MOPS prices, offset by lower operating expenditure contributed by lesser advertising and promotion activities.
Commercial Segment
Commercial Segment recorded decrease in revenue of RM2,623.3 million due to lower average selling prices by 44% and volume by 47% respectively following lesser demand.
LBT for the quarter was RM2.9 million compared to PBT of RM130.2 million mainly due to lower margins and volume from Jet A1 and Diesel.
14
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
PART B EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF MAIN MARKET LISTING REQUIREMENT
OF BURSA MALAYSIA SECURITIES BERHAD
B2 REVIEW OF GROUP PERFORMANCE
b) Performance of the current period against the corresponding period last year
Cumulative quarter ended | |||||||||
Group | Retail | Commercial | |||||||
June | June | Var | June | June | Var | June | June | Var | |
2020 | 2019 | % | 2020 | 2019 | % | 2020 | 2019 | % | |
Revenue | 9,485.7 | 14,692.1 | (35) | 5,226.2 | 7,506.9 | (30) | 4,252.3 | 7,172.5 | (41) |
(Loss)/ Profit | |||||||||
before | (17.3) | 620.6 | (>100) | (63.6) | 338.7 | (>100) | 70.6 | 275.9 | (74) |
taxation |
Retail Segment
Retail Segment revenue decreased by RM2,280.7 million due to lower sales volume of 19% in tandem with lesser demand as well as decrease in average selling prices by 14%.
LBT for the period was RM63.6 million compared to PBT of RM338.7 million, a decrease of RM402.3 million mainly due to lower revenue from Mogas and Diesel following the sharp decline in MOPS prices.This was offset by lower operating expenditure contributed by lesser advertising and promotion activities.
Commercial Segment
Commercial Segment recorded a decrease in revenue of RM2,920.2 million due to decerase in average selling prices by 20% and lower sales volume by 26% mainly due to lesser demand .
PBT decreased by RM205.3 million in line with lower gross profit from Jet A1 and Diesel following decrease in MOPS prices.
15
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
PART B EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF MAIN MARKET LISTING REQUIREMENT OF BURSA MALAYSIA SECURITIES BERHAD
B3 VARIATION OF RESULTS AGAINST PRECEDING QUARTER | |||
Quarter ended | |||
June | Mar | Var | |
2020 | 2020 | % | |
Revenue | 2,931.8 | 6,553.9 | (55) |
Profit/(Loss) before taxation | 1.2 | (18.4) | >100 |
Group revenue for the quarter ended 30 June 2020 decreased by 55% compared to the preceding quarter mainly due to lower sales volume of 35% and decrease in average selling prices of 32%.
PBT for the quarter was recorded at RM1.2 million compared to LBT of RM18.4 million in the preceding quarter contributed by lower operating expenses following decrease in advertising and promotion activities. This was offset by lower margins mainly from Commercial segment by RM76.4 million due to lower sales volume and average selling prices.
16
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
PART B EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF MAIN MARKET LISTING REQUIREMENT OF
BURSA MALAYSIA SECURITIES BERHAD
B4 COMMENTARY ON PROSPECTS
The Group continued to experience challenging market conditions in Q2 2020 due to COVID 19 pandemic and
m mid-March to April 2020, with gradual recovery in early May 2020
onwards.
as compared to a growth of 0.7% in Q1 2020.
the 100-point optimism threshold. Closure of non-essential manufacturing and construction businesses has impacted demand for commercial diesel. Meanwhile, demand for Aviation fuel continues to be affected by restricted global traveling.
ices. Average Brent price in Q2 2020 has decreased by 41.5% to USD29.20/bbl, from USD50.26/bbl in Q1 2020 and the price is expected to remain volatile.
are expected to improve gradually as the government begin to ease the implementation of the MCO and facilitate business resumption except for the aviation sector which is anticipated to take a longer time to recover.
The Group is committed to focus on its business improvement initiatives, strengthen its inventory management, improve its supply and distribution efficiency as well as optimise operating expenditure to ensure the Group remain resilient during this challenging time.
Retail Segment
Retail business will continue to focus on enhancing customer experience through its operational excellence and digital expansion initiatives. This include enabling SETEL mobile application at all stations. Non-fuel business will also continue to enhance its offerings and provide convenience to the customers.
Meanwhile, LPG business will continue to focus on strengthening its distribution channels and Lubricant business is expanding its Auto Expert service centres and to market products on E-commerce platforms such as Lazada and Shopee.
Commercial Segment
Services and Manufacturing sectors are the key drivers fo 2020 showed a growth of 4.7% as compared to de-growth of 4.2% in March 2020. The growth recovery in Manufacturing activities would lead to stronger demand for petroleum products which will provide opportunities for the Commercial Segment.
Commercial business will continue to remain vigilant during this difficult time and provide superior value proposition to its customer through enhancing channel delivery, providing comprehensive product offerings, leveraging on superior logistics and distribution network to sustain existing markets and capture new markets.
(Source: Platts, DOSM, MIER)
17
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
PART B EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF MAIN MARKET LISTING REQUIREMENT OF
BURSA MALAYSIA SECURITIES BERHAD
B5 PROFIT FORECAST
Not applicable as the Group does not publish any profit forecast.
B6 TAXATION
Tax expense comprises the following:
Individual quarter ended | Cumulative quarter ended | |||||||
30 June | 30 June | |||||||
2020 | 2019 | 2020 | 2019 | |||||
Income Tax: | ||||||||
Current period | 1,561 | 68,811 | 14,196 | 164,439 | ||||
Deferred Taxation: | ||||||||
Current period | (2,066) | (5,562) | (5,430) | (11,788) | ||||
(505) | 63,249 | 8,766 | 152,651 |
The tax expenses for the quarter and period ended 30 June 2020 were mainly from certain subsidiaries of the Group which are profitable, coupled with higher non-deductible expenses.
B7 STATUS OF CORPORATE PROPOSALS ANNOUNCED | ||||
There were no corporate proposals announced as at the date of this report. | ||||
B8 BORROWINGS | ||||
(a) Partic | ||||
As at | As at | |||
30 June | 31 December | |||
2020 | 2019 | |||
Non Current | ||||
Secured | ||||
Lease liabilities | 122,950 | 158,694 | ||
Unsecured | ||||
Islamic financing facilities | 750 | 9,959 | ||
123,700 | 168,653 | |||
Current | ||||
Secured | ||||
Lease liabilities | 96,725 | 140,239 | ||
Unsecured | ||||
Islamic financing facilities | 19,211 | 19,797 | ||
Revolving credit facility | - | 5,466 | ||
115,936 | 165,502 | |||
239,636 | 334,155 |
18
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
PART B EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF MAIN MARKET LISTING REQUIREMENT
OF BURSA MALAYSIA SECURITIES BERHAD
B8 BORROWINGS (CONTINUED) | ||||
(a) | (continued): | |||
As at | As at | |||
30 June | 31 December | |||
I | 2020 | 2019 | ||
By Currency | ||||
RM | 162,427 | 226,469 | ||
USD | 76,782 | 101,672 | ||
THB | 427 | 6,014 | ||
239,636 | 334,155 | |||
The Islamic financing facilities are denominated in Ringgit Malaysia and governed by the Musharakah Mutanaqisah and Commodity Murabahah principles, and bear a profit margin ranging from 3.09% to 4.32% (2019: 4.27% to 4.68%) per annum.
The revolving credit facility is denominated in Thai Baht and bears an interest rate of 2.80% (2019: 2.90%) per annum.
The lease liabilities bear interest at rates ranging from 4.19% to 8.43% (2019: 4.19% to 8.43%) per annum.
(b) Reconciliation of borrowings arising from financing activities
Cash flows | Non-cash changes | |||||||||||
Foreign | ||||||||||||
As at 1 | Net | Interest | exchange | As at 30 | ||||||||
January 2020 | repayment | expenses | movement | Others | June 2020 | |||||||
Islamic | ||||||||||||
financing | ||||||||||||
facilities | 29,756 | (9,795) | (532) | - | 532 | 19,961 | ||||||
Revolving | ||||||||||||
credit | ||||||||||||
facility | 5,466 | (5,549) | (27) | 83 | 27 | - | ||||||
Lease | ||||||||||||
liabilities | 298,933 | (79,974) | (7,965) | - | 8,681 | 219,675 | ||||||
334,155 | (95,318) | (8,524) | 83 | 9,240 | 239,636 |
B9 MATERIAL LITIGATION
There are no material litigations as at the date of this report.
19
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
PART B EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF MAIN MARKET LISTING REQUIREMENT
OF BURSA MALAYSIA SECURITIES BERHAD
B10 DIVIDENDS
The Board has declared an interim dividend of 5 sen per ordinary share amounting to RM49,672,700 for quarter ended 30 June 2020, payable on 24 September 2020 (Quarter 2 2019: an interim dividend of 14 sen per ordinary share amounting to RM139,083,560).
NOTICE IS HEREBY GIVEN that the interim dividend will be payable on 24 September 2020 to depositors registered in the Records of Depositors at the close of the business on 10 September 2020. A depositor shall qualify for entitlement to the dividends only in respect of:
- ShaSecurities Account before 4.00 pm on 10 September 2020 in respect of ordinary transfers.
- Shares bought on the Bursa Malaysia Securities Berhad on a cum entitlement basis according to the rules of the Bursa Malaysia Securities Berhad.
B11 BASIC EARNINGS PER SHARE
Basic earnings per share is derived based on the profit attributable to shareholders of the Company and based on the number of ordinary shares outstanding as at 30 June 2020.
Profit/ (Loss) attributable to shareholders of the Company
Earnings/ (Loss) per ordinary share (sen)
B12 TRADE RECEIVABLES
In RM'000
Trade receivables
- Third party
- Related companies Less:
- Impairment loss: specific
- Impairment loss: general
At net
Current
Past due 1 to 30 days
Past due 31 to 60 days
Past due 61 to 90 days
Past due more than 90 days
Individual quarter ended | Cumulative quarter ended | |||||
30 June | 30 June | |||||
2020 | 2019 | 2020 | 2019 | |||
3,510 | 172,751 | (25,911) | 463,947 | |||
993,454 | 993,454 | 993,454 | 993,454 | |||
0.4 | 17.4 | (2.6) | 46.7 |
As at | As at | |||||
30 June | 31 December | |||||
2020 | 2019 | |||||
1,005,067 | 1,262,929 | |||||
61,054 | 98,430 | |||||
(3,963) | (8,049) | |||||
(8,855) | (2,420) | |||||
1,053,303 | 1,350,890 | |||||
880,958 | 1,281,254 | |||||
73,681 | 26,831 | |||||
35,395 | 12,389 | |||||
29,616 | 10,840 | |||||
33,653 | 13,328 | |||||
1,053,303 | 1,350,890 | |||||
As at 30 June 2020, the maximum exposure to credit risk arising from trade receivables are represented by the carrying amounts in the statement of financial position.
20
PETRONAS DAGANGAN BERHAD198201008499 (88222-D)
QUARTERLY REPORT
FOR SECOND QUARTER ENDED 30 JUNE 2020
PART B EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF MAIN MARKET LISTING REQUIREMENT
OF BURSA MALAYSIA SECURITIES BERHAD
B13 PROFIT FOR THE PERIOD
Individual quarter ended | Cumulative quarter ended | ||||||
30 June | 30 June | ||||||
In RM'000 | 2020 | 2019 | 2020 | 2019 | |||
Profit for the period is arrived at after | |||||||
charging: | |||||||
Depreciation and amortisation* | 126,552 | 118,289 | 255,393 | 224,455 | |||
Impairment loss on trade and other receivables | 892 | 696 | 7,046 | 774 | |||
Net loss on disposal of property, plant and | 54 | 874 | 300 | - | |||
equipment | |||||||
Interest on revolving credit | 7 | 14 | 27 | 49 | |||
Net unrealised loss on foreign exchange | - | 1,200 | - | 22 | |||
Profit margin for Islamic financing facility | 220 | 509 | 532 | 1,063 | |||
Interest on lease liabilities | 3,725 | 4,485 | 7,965 | 9,350 | |||
Inventories written-off | 28 | 79 | 28 | 79 | |||
and after crediting: | |||||||
Net gain on disposal of property, plant and | |||||||
equipment | - | - | - | 17,866 | |||
Inventories written-back | 666 | - | 666 | - | |||
Interest income | 11,705 | 28,871 | 37,797 | 55,690 | |||
Income from rental of premises | 111 | 202 | 210 | 432 | |||
Net unrealised gain on foreign exchange | 682 | - | 2,079 | - | |||
Net realised gain on foreign exchange | 179 | 840 | 195 | 1,225 | |||
Reversal of impairment loss on trade and other | |||||||
receivables | 359 | 142 | 737 | 559 | |||
Covid-19 related rent concessions | 50 | - | 50 | - |
Other disclosure items pursuant to Appendix 9B Note 16 of the Listing Requirements of Bursa Malaysia Securities Berhad are not applicable.
* Includes depreciation on rights-of-use assets
BY ORDER OF THE BOARD
Suria Kamarul Baharin (LS0010448)
Yeap Kok Leong (MAICSA 0862549)
Joint Secretaries
Kuala Lumpur
25 August 2020
21
Attachments
- Original document
- Permalink
Disclaimer
Petronas Dagangan Bhd published this content on 25 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 August 2020 07:27:05 UTC