Petronas Dagangan Bhd

Petronas Dagangan Declares Record RM1.07 Dividend for FY2024 as 4Q Net Profit Jumps 38%

Petronas Dagangan Bhd (KL:PETDAG) has declared a special dividend as its net profit soared in the fourth quarter ended Dec 31, 2024 (4QFY2024), driven by disciplined cost management and higher margins for its retail and convenience segments.
‌
The group, in which Petroliam Nasional Bhd (Petronas) holds a 63.94% stake, announced a special dividend of 20 sen per share, in addition to an interim dividend of 25 sen per share, to be paid to shareholders on March 21.

This compares to the 27 sen per share interim dividend declared in 4QFY2023.
‌
With this, the group’s total dividend payout for FY2024 amounts to RM1.07 per share — its highest on record — surpassing the 80 sen per share paid in FY2023.

For 4QFY2024, PetDag’s net profit climbed 37.8% to RM249.06 million, from RM180.81 million in the same quarter last year.
‌
However, revenue declined 10.74% to RM8.99 billion from RM10.08 billion, mainly due to lower average selling prices and reduced commercial sales volume.

On a quarter-on-quarter basis, net profit increased 27% from RM196.01 million in 3QFY2024, while revenue fell 8% from RM9.73 billion, reflecting lower fuel demand and softer crude oil prices.
‌
For the full FY2024, PetDag recorded a 15.22% increase in net profit to RM1.09 billion from RM943.08 million in FY2023. Revenue inched up 1.07% to RM37.95 billion from RM37.55 billion.
‌
Looking ahead, PetDag remains cautious as global trade headwinds and declining oil prices — expected to average US$74 per barrel in 2025, down from US$80 per barrel in 2024 due to geopolitical uncertainties and Opec+ production adjustments — may impact domestic growth and inflation.
‌
Despite these challenges, PetDag plans to strengthen its core and convenience segments through strategic initiatives, emerging opportunities, and alignment with government policies.“The group will also remain vigilant and focused on operational efficiency to enhance its market competitiveness."
‌
At Thursday’s noon break, shares of PetDag settled 48 sen or 2.41% lower at RM19.42, giving it a market capitalisation of RM19.77 billion.

$PETDAG / 5681 (PETRONAS DAGANGAN BHD)

Source: The Edge Malaysia

Petronas berencana melakukan pemangkasan ribuan pekerja sebagai bagian dari perampingan organisasi untuk memastikan kelangsungan hidup jangka panjang perusahaan. CEO Petronas, Tengku Muhammad Taufik Tengku Aziz, mengungkapkan bahwa langkah ini diambil untuk memastikan bahwa perusahaan tetap dapat bertahan dalam beberapa dekade mendatang. Meskipun kondisi perusahaan saat ini masih baik, jumlah pegawai administrasi yang terlalu besar menjadi perhatian. Saat ini, Petronas mempekerjakan sekitar 50.000 orang, dengan 15.000 di antaranya bekerja di bagian administrasi, yang lebih tinggi dari rata-rata industri.

Perampingan ini dianggap penting karena sektor minyak dan gas global semakin menghadapi tantangan, dan kondisi baik yang dirasakan saat ini diperkirakan tidak akan bertahan lama. Petronas perlu mempersiapkan diri untuk masa-masa sulit yang mungkin datang di masa depan. Perampingan ini dianggap sebagai langkah strategis untuk menjaga efisiensi dan memastikan perusahaan tetap dapat bersaing dalam industri yang penuh ketidakpastian.

Taufik menegaskan bahwa jika langkah perampingan ini tidak diambil sekarang, Petronas bisa menghadapi risiko kebangkrutan dalam waktu sepuluh tahun mendatang. Oleh karena itu, perampingan ini dianggap sebagai langkah yang sangat diperlukan untuk memastikan kelangsungan hidup perusahaan di masa depan.

Sumber: IDX Channel

$PETDAG / 5681 (PETRONAS DAGANGAN BHD) $PETGAS / 6033 (PETRONAS GAS BERHAD)

Sabah’s O&G Aspirations Quietly Brewing

Much has been reported about the Sarawak government’s negotiations via Petroleum Sarawak Bhd (Petros) with Petroliam Nasional Bhd (Petronas) for the Bornean state’s rights to regulate the oil and gas (O&G) developments within its boundaries. Next door, however, information on Sabah’s progress has seemed scant by comparison, given that both states are on a similar quest.
‌
For the most part, people watching the unfolding of events in Sarawak have perceived Sabah to be sitting in the shadows, as if waiting to ride the efforts of its gallant neighbour.
‌
Up until about a year ago, SMJ Energy Sdn Bhd, which is, if you will, Sabah’s version of Petros, stayed out of the public eye, maintaining a carefully positioned narrative of having transformed into a RM5.1 billion company since its inception in December 2021, after its acquired assets bore fruit last year.
‌
Although both states have separate agreements with Petronas, SMJ Energy (formerly known as SMJ Sdn Bhd) says its method to steer the state’s O&G sector is, at least for now, profoundly different from that of Sarawak.
‌
SMJ Energy has made known that it wants a bigger share and a bigger say in its O&G assets without the exploration risks that come with development. Currently, SMJ Energy is still in discussion with Petronas on various opportunities, and ironing out the “nitty-gritty of assets”.
‌
Meanwhile, a snapshot at Sabah state as a whole reveals that in 2023, the state contributed 5.5% of national gross domestic product (GDP), making it the sixth biggest state by GDP contribution, ahead of Perak (5.4%) but lagging behind Penang (7.6%), neighbouring Sarawak (9.3%), Johor (9.7%), Kuala Lumpur (16.3%) and Selangor (26.7%).
‌
While Sabah’s GDP contribution lags behind more economically vibrant states such as Selangor or Penang, the state has made much progress from the standpoint of financial strength, thanks to a bigger share of O&G returns.
‌
Oil revenue in Sabah, which now comprises both petroleum state sales tax (SST) and oil royalty, has exceeded RM2 billion annually since 2021, when the SST came into force, and touched a high of RM3.53 billion in 2022.

$PETDAG / 5681 (PETRONAS DAGANGAN BHD)

https://cutt.ly/KeZiIGoe

$PETDAG / 5681 (PETRONAS DAGANGAN BHD)
Research Report by TA

$PETDAG / 5681 (PETRONAS DAGANGAN BHD)
Research Report by RHB

$PETDAG / 5681 (PETRONAS DAGANGAN BHD)
Research Report by HLIB

$PETDAG / 5681 (PETRONAS DAGANGAN BHD)
Research Report by CGSI

$PETDAG / 5681 (PETRONAS DAGANGAN BHD) $TENAGA / 5347 (TENAGA NASIONAL BHD)
Di Malaysia lagi heboh pajak dividen 2% bagi yang dapat dividen di atas 100,000 Ringgit.

MIDF Research remains positive on PETRONAS Dagangan Bhd’s ongoing sustainable aviation fuel (SAF) project, Cafe Mesra outlet expansion and integration of electric vehicle charging stations.

$PETDAG / 5681 (PETRONAS DAGANGAN BHD)
Research by Kenanga
OUTPERFORM – TP RM21.20

"Diesel Volumes Stable for Now”

In an analyst briefing, PETDAG shared that the decline in its retail diesel volumes due to subsidy rationalisation has been largely offset by an improvement in its commercial division. Additionally, the significant sales drop from petrol stations near the Malaysian border appears to be insignificant relative to the group’s total sales at this juncture. We maintain our forecasts, TP of RM21.20 and OUTPERFORM call.

Analyst:
Lim Sin Kiat CFA
limsk@kenanga.com.my

$PETDAG / 5681 (PETRONAS DAGANGAN BHD)

$PETDAG / 5681 (PETRONAS DAGANGAN BHD)
Research by TA
Sell - TP RM18.10

"Targeted Subsidies to Drag Earnings"

Maintain Sell at unchanged TP of RM18.10 based on of 20x CY25 EPS. Our valuation is at a discount to its 5-year mean forward PER of 31x given an increasingly challenging earnings outlook from subsidy rationalisation plans undertaken by the Government.

Analyst:
Kaladher Govindan
kaladher@ta.com.my

$PETDAG / 5681 (PETRONAS DAGANGAN BHD)
Research by RHB
Neutral - TP RM20.24

"A Temporary Breather?"

Keep NEUTRAL, with new MYR20.24 TP from MYR20.82, 9% upside. Petronas Dagangan’s 1H24 results bore no surprises, with core profit falling 11% YoY no thanks to higher opex despite overall sales volume growth of 6%. We believe the potential delay in the RON95 subsidy rationalisation would provide a breather while a clearer impact on the diesel subsidy rationalisation will be known in 2H24.

Analyst:
Sean Lim, CFA
sean.lim@rhbgroup.com

$PETDAG / 5681 (PETRONAS DAGANGAN BHD)
Research by MIDF
Buy - TP RM24.63

"High Opex, Product Cost Offset by High Product Demand"

• 1HFY24 earnings lost 13%yoy and revenue up +9%yoy, earnings below our expectation
• Higher revenue due to higher sales volume and ASP; lower earnings due to higher product costs and opex
• All segments contributed to the lower earnings, but sales higher for Retail and Convenience segments
• Maintain BUY with revised TP of RM24.63

Analyst:
MIDF Research
research@midf.com.my

$PETDAG / 5681 (PETRONAS DAGANGAN BHD)
Research by Kenanga
Outperform - TP RM21.20

"Still Sailing Steadily"

PETDAG’s 1HFY24 was within our and street’s estimates. Higher opex, YoY, resulted in lower core earnings for 1HFY24. We cut our DCF-TP by 11% to RM21.20 after increasing our WACC to account for the timing uncertainties of the RON95 subsidy rationalisation. Despite that, the implied FY24F PER would be at 21.2x, still below its 5-year mean of 26.5x. We maintain our forecast and OUTPERFORM call.

Analyst:
Lim Sin Kiat, CFA
limsk@kenanga.com.my

$PETDAG / 5681 (PETRONAS DAGANGAN BHD)
Research by HLIB
Hold - TP RM19.13

"Earnings to moderate in 2H24"

PetDag raked in 2Q24 core net profit of RM286.3m (+26% QoQ, +4% YoY), lifting 1H24 core earnings to RM512.7m (-11% YoY) – accounting for 54%/52% of ours/consensus FY24 forecasts. We deem the results within expectations. Core earnings rose 26% QoQ due to better EBIT contribution from Commercial (+37%) as average MOPS jet fuel price slipped 4% QoQ and we believe a meaningful portion of diesel sales from Retail channel has been diverted to the Commercial segment. We anticipate contribution from Retail segment to record sequential decline in 2H24 as the impact of floated diesel prices will be fully felt from 3Q24 onwards. Maintain our forecasts and HOLD call with unchanged TP of RM19.13.

Analyst:
Brian Chin
brianchy@hlib.hongleong.com.my

$PETDAG / 5681 (PETRONAS DAGANGAN BHD)
Research by CGS
Reduce - TP RM16.78

"Risk from RON95 subsidy rationalisation"

■ 1H24 core net profit of RM518m was 51% of our full-year forecast, broadly in line with expectations since 2H24F could be slightly weaker.
■ This is due to the diesel subsidy rationalisation (effective 10 Jun 2024), and potential RON95 mogas subsidy rationalisation in 2H24F.
■ Reiterate Reduce with unchanged DDM-based TP of RM16.78; PDB makes a bigger gross profit selling RON95 than for diesel, according to the APM.

Analyst:
Raymond YAP, CFA
raymond.yap@cgsi.com

$KLK / 2445 (KUALA LUMPUR KEPONG BERHAD) $KLSE-SDG $PETDAG / 5681 (PETRONAS DAGANGAN BHD) $PCHEM / 5183 (PETRONAS CHEMICALS GROUP BERHAD)

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD ("EPF BOARD")

44 Largest Companies in ASEAN 2024 by Fortune 500 Southeast Asia 🇮🇩 🇹🇭 🇲🇾 🇸🇬 🇻🇳 🇵🇭 🇰🇭

Number of Companies: -
Indonesia 🇮🇩 110
Thailand 🇹🇭 107
Malaysia 🇲🇾 89
Singapore 🇸🇬 84
Vietnam 🇻🇳 70
Philippines 🇵🇭 38
Cambodia 🇰🇭 2

Aggregated Revenues (Billion Dollar): -
Singapore 🇸🇬 619.4
Thailand 🇹🇭 375.9
Indonesia 🇮🇩 321.4
Malaysia 🇲🇾 194.9
Vietnam 🇻🇳 144.4
Philippines 🇵🇭 130.9
Cambodia 🇰🇭 1.4

Average Company Profit (Million Dollar): -
Singapore 🇸🇬 527.1
Philippines 🇵🇭 350.0
Indonesia 🇮🇩 250.6
Thailand 🇹🇭 177.9
Cambodia 🇰🇭 163.1
Malaysia 🇲🇾 155.5
Vietnam 🇻🇳 154.4

🇲🇾 Malaysia companies that making on the list including $MAYBANK / 1155 (MALAYAN BANKING BERHAD), $TENAGA / 5347 (TENAGA NASIONAL BHD), $SIME / 4197 (SIME DARBY BERHAD), $PETDAG / 5681 (PETRONAS DAGANGAN BHD), and $CIMB / 1023 (CIMB GROUP HOLDINGS BERHAD).

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD ("EPF BOARD")

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD ("EPF BOARD")

$PETDAG / 5681 (PETRONAS DAGANGAN BHD)
Research by MIDF
Buy – TP RM24.91

“Mou Signed with PLUS to Build Hybrid Superstations"

Considering that this MoU is not valued as of writing and is still considered in its preliminary stages, we make no changes to our earnings estimates. We maintain our BUY call for PDB, with a target price of RM24.91.

Analyst:
MIDF Research
research@midf.com.my

OIL & GAS
$DIALOG / 7277 (DIALOG GROUP BERHAD) $PETDAG / 5681 (PETRONAS DAGANGAN BHD) $VELESTO / 5243 (VELESTO ENERGY BERHAD)
Research by Kenanga
Overweight

“Opportunities in Mid-stream and Upstream”

We maintain OVERWEIGHT on the sector. We keep our Brent crude oil price forecasts at USD84/bbl and USD79/bbl for CY24 and CY25 based on the assumption that OPEC+ will discontinue production cuts by the end of CY24 and gradually ramp up production in CY25. These oil price levels are supportive of local upstream investment, especially considering the under-investment by producers in the early 2020s. We favor owners of offshore supply vessel (OSV) and jack-up rigs on favourable rates on the back of a supply crunch and the midstream storage segment due to arbitrage opportunities arisng from a contango in the oil market and oil traders having to structurally hold higher inventories as part of supply-chain risk management amidst heightened geo-political tensions.

Analyst(s):
Lim Sin Kiat, CFA
limsk@kenanga.com.my

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD ("EPF BOARD")

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD ("EPF BOARD")

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD ("EPF BOARD")

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD ("EPF BOARD")

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD ("EPF BOARD")

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD ("EPF BOARD")