PETRONAS Dagangan (PETDAG) Q2 2024 earnings summary

Executive summary

• Achieved resilient financial performance in H1 2024, with revenue and gross profit up 10% year-over-year, driven by higher sales volume and average selling prices.

• Q2 2024 revenue rose 10% year-over-year to RM9.84 billion, with retail and commercial segments leading growth.

• Profit before tax (PBT) for H1 2024 declined 8% to RM722.9 million due to higher OPEX, while Q2 PBT increased 6% to RM396.1 million.

• Maintained commitment to shareholders with continued dividend payouts and operational excellence.

Financial highlights

• H1 2024 revenue reached RM19,231.1 million, a 10% increase year-over-year; gross profit also up 10% to RM2,252.0 million.

• EBITDA increased 6% to RM947.2 million; Q2 2024 net profit was RM283.3 million, up from RM276.7 million in Q2 2023.

• Cash and cash equivalents more than doubled to RM3,118.8 million as of June 2024.

• Basic earnings per share for Q2 2024 was 27.8 sen; H1 2024 EPS was 50.6 sen, down from 58.1 sen in H1 2023.

• Net cash generated from operating activities for H1 2024 surged to RM2.18 billion, mainly due to higher subsidy receipts.

Outlook and guidance

• Remains cautiously optimistic for the rest of FY2024 amid global economic and geopolitical uncertainties.

• Performance in retail and commercial segments expected to remain robust, supported by projected GDP growth and stable Brent crude oil prices.

• Focus on preserving margins, expanding non-fuel retail, disciplined cost management, and leveraging aviation sector recovery.

• Monitoring subsidy rationalisation and regulatory changes to ensure readiness and compliance.