PETRONAS Dagangan : Future-Proofing Petronas Dagangan Berhad Through Innovation
05/04/2021 | 06:00pm EDT
Kuala Lumpur, 28 April 2021 - PETRONAS Dagangan Berhad (PDB) today announced at its virtual 39th Annual General Meeting that the Company had closed FY2020 with a pre-tax profit of RM386.4 million despite an economic slowdown due to COVID-19. The company declared and paid a dividend of 38 sen per ordinary share representing a payout ratio of 96 per cent.
Elaborating on PDB's performance, Azrul Osman Rani, Managing Director and Chief Executive Officer said, 'We were quick to adapt to the changing market last year and ensured the business remains profitable. Despite the uncertainties, we maintained our market leadership, reflecting PDB's resilience in times of adversity.
'The need to future-proof our business is even more necessary now amidst the evolving energy industry and the rise in the e-commerce sector. Our proactive response to these challenges has and will continue to keep us ahead of the curve,' he added.
In 2020, PDB's Retail business continued to invest in elevating customers' experience by expanding and upgrading its network of stations. The introduction of the PETRONAS Primax 97 with Pro-Race fuel has garnered positive testimonials. The business also capitalised on food-to-go solutions by introducing Makan@Mesra, gradually expanding its menu based on customer demand. In addition, it digitalised the Mesra Redemption Portal and integrated it with the Setel app, making redemption more convenient for customers. The Retail business will continue to deliver innovative solutions that meet PDB's customers' changing needs.
The Commercial business drove sales recovery post-lockdown to sustain market leadership. It has put in place effective strategies to capitalise on demand recovery, whilst continuing to increase customer base and experience.
The Liquefied Petroleum Gas (LPG) business solidified its market leadership position by expanding its commercial customer base and new sales channel for the household, making GAS PETRONAS more accessible for the consumers. The LPG business will continue to expand its accessibility to benefit more customers, including capitalising digital platforms for the convenience of its customers.
The Company also diversified its product portfolio to include the marketing of liquefied natural gas (LNG) as a cleaner fuel option. PDB, through PETRONAS Group's Virtual Pipeline System (VPS), is now the first in Malaysia to supply LNG via road tankers to off-grid customers. Additionally, it is marketing LNG to the marine industry via PETRONAS' first LNG bunkering vessel (LBV) MV Avenir Advantage, which allows for ship-to-ship transfer - the first in Southeast Asia to offer such a solution. This allows PDB to play a key role in facilitating the growth of natural gas usage in support of the national sustainability agenda.
The Lubricant business made inroads into key economic sectors and expanded its customer base for both B2B and B2C segments. Its entry into the e-commerce space also supported business growth, doubling its sales quarter-on-quarter. The Lubricant business will continue to deliver a differentiated customer experience to remain competitive, including leveraging its network of PETRONAS AutoExpert workshops.
In addition to the four core businesses, PDB will leverage its digital and innovative ventures including Setel, Malaysia's first e-payment solution that enables fuel purchases directly from mobile devices; ROVR, Malaysia's first mobile refueling service for commercial customers; and PRYSM, its newly launched merchandise brand.
PDB continues to upgrade the Setel app for an improved user experience. New features include Setel wallet where customers can now use via app to pay at Kedai Mesra nationwide, as well as Deliver2Me where selected purchases from over 140 Kedai Mesra outlets will be delivered directly to the vehicle.
ROVR, though primarily serves commercial customers, has proven to be pivotal in serving the community. During the pandemic, it was deployed to ease customer refueling needs at restricted areas and more recently, to aid the needs of flood rescue operation teams.
PRYSM was launched last year in response to the demand for PETRONAS-branded merchandise. Available online and at PETRONAS stations PRYSM, which features over 60 products, has registered sales of RM8 million as of FY2020.
Sustainability will continue to be a key agenda for PDB to strike a balance between people, planet, and profit. One of the key areas is the development of local entrepreneurs, especially the SME vendors registered with PDB. Plans are also underway to facilitate the adoption of sustainable energy at its retail stations and more environmental-friendly packaging materials. In 2020, PDB was awarded a 4-star rating by FTSE4Good for Environmental, Social and Governance, putting PDB among the top 25 per cent of PLCs in the FBM EMAS by ESG Rating.
'As part of future-proofing PDB, we have exciting plans in the pipeline that will help us identify new revenue streams as well as deliver on our brand promise. We are confident that we will steer PDB to greater heights and continue to maintain our market leadership', Azrul concluded.