PETRONAS Dagangan : Raises The Bar With Landmark Achievements And a Focus On Simpler, Better Customer Experiences

KUALA LUMPUR, 29 APRIL 2024 - PETRONAS Dagangan Berhad today celebrated record-breaking success at its 42nd Annual General Meeting (AGM), announcing a landmark year driven by its commitment to meeting evolving customer needs through high quality offerings and innovative solutions, while recognising the need for ongoing progress in sustainability initiatives.

PETRONAS Dagangan's focus on simpler and better experiences for customers has fuelled impressive results. The Company achieved record sales volume exceeding 16 billion litres in 2023, an eight per cent increase year-on-year. Despite lower average sales prices, PETRONAS Dagangan saw a two per cent revenue increase due to higher sales volume, and its profit after tax also improved by 23 per cent, reaching nearly RM1 billion. Backed by this strong performance, PETRONAS Dagangan declared a total dividend of 80 sen per share.

Speaking at the event, PETRONAS Dagangan Managing Director and Chief Executive Officer Azrul Osman Rani said, "Our record-breaking performance demonstrates the success of our strategy to raise the bar by delivering superior customer experience. Consumers today demand simpler, better ways of doing things, and we are responding with significant investments in both our physical and digital solutions".

During the AGM, PETRONAS Dagangan highlighted its significant strides in the following areas:

• The Retail Business achieved record sales volume in 2023 driven by superior customer service, premium-quality products and digital solutions such as the cardless Mesra Rewards loyalty programme. This innovation has ensured a seamless and hassle-free interaction, revolutionising customer experience.
• The Commercial Business saw strong growth in response to the resurgent demands within the Aviation and Upstream sectors. PETRONAS Dagangan is also piloting and exploring the expansion of cleaner alternative fuels such as Sustainable Aviation Fuel, Biodiesel and LNG into the market.
• The Liquified Petroleum Gas (LPG) Business outpaced industry growth with a six per cent increase, strengthening its position as a market leader in both the Household and Commercial segments. It has secured over 40 new commercial customers across diverse sectors such as retail, food and beverage (F&B) and hospitality.
• The Lubricants Business achieved remarkable results, boasting a nine per cent increase in sales, underpinned by the robust performance of its power brands namely, Syntium, Sprinta and Urania. Moreover, PETRONAS AutoExpert network continues its aggressive expansion through the addition of 34 new outlets, bringing the total count to 81, including East Malaysia.
• In the Convenience business, Mesra Retail and Café Sdn. Bhd. (MESRA) achieved chargeable sales that surged beyond RM1 billion for the second consecutive year, propelled by the Company's proactive approach in diversifying its product range, notably through the introduction of Mesra label products. It welcomed 20 new partners last year, predominantly local, underscoring PETRONAS Dagangan's dedication to promoting and supporting Malaysian businesses. Meanwhile, with the addition of 56 new outlets in 2023, Café Mesra now boasts a network of 105 locations. Nearly half of these outlets are located beyond PETRONAS stations, with diverse formats designed to enhance the customer experience.
• Setel saw a substantial growth trajectory in the same financial year, with a significant surge in Gross Merchandise Value (GMV) from RM1.8 billion to RM2.5 billion. Its selection as one of the e-wallet service providers for eBeliaRahmah and eMadani has further expanded its user base.
• In the Sustainability space, PETRONAS Dagangan collaborated with Gentari to install solar panels at 54 stations and equipped 32 stations with electric vehicle (EV) charging facilities. The Company also formed strategic partnership to introduce 2-wheeler battery swapping facilities at 14 stations in Klang Valley. In addition, PETRONAS Dagangan has collected over 133,000kg of used cooking oil (UCO) from more than 7,000 customers in the past year. To date, it has expanded its UCO collection points to 53 stations nationwide.

The virtual AGM was chaired by PETRONAS Dagangan Chairman Datuk Anuar Ahmad, alongside Managing Director and Chief Executive Officer Azrul Osman Rani, Chief Operating Officer Khalil Jaffri Muhammad Muri and Chief Financial Officer Farzlina Ahmad Murad. The rest of PETRONAS Dagangan Board members attended the event virtually.