Strong improvement in PetDag 2Q results  

PETALING JAYA: With geopolitical developments in West Asia continuing to influence global energy markets and the oil price outlook for the second half of 2026 (2H26), PETRONAS Dagangan Bhd (PetDag) is staying focused on executing its strategic priorities through disciplined cost management and supply reliability.

Despite these external headwinds, the group said Malaysia’s domestic demand fundamentals are expected to remain supportive, underpinned by continued household spending, steady tourism activity and manageable inflation.

“This is further strengthened by domestic policy measures, including targeted fuel subsidies, which are expected to sustain mobility, fuel demand and retail activity,” it added.

Releasing its results for the second quarter (2Q26) for the financial year ending December (FY26), PetDag saw net profit surging by 45.8% year-on-year (y-o-y) to RM387.1mil, buoyed by a 77.5% jump in revenue to RM16.1bil, on the back of higher average selling prices which increased by 75%, coupled with a 1% increase in sales volume.

It credited the improved 2Q26 profitability to higher gross profit from its commercial segment, which was partially offset by lower margins from the retail segment coupled with higher expenditure.

For the half-year ended June, PetDag registered a bottom line growth of 19.9% y-o-y to RM670.2mil, anchored by a turnover rise of 50% to RM27.2bil.

Higher average selling prices and sales volume had given rise to the topline growth, while improved margins from its commercial and retail segments had driven the improvement in profitability for 1H26, although this was partially offset by higher expenditure.

Earnings per share for 2Q26 and 1H26 were at 39 sen and 67.5 sen, respectively.

Compared to the preceding quarter ended March 31, net profit was also up by 36.8% from RM283mil, as revenue rose 44.3% from RM11.2bil, which PetDag attributed to a 45% rise in average selling prices and a higher gross profit in its commercial segment.

Meanwhile, the group reported that net cash generated from operating activities was lower by RM965.3mil, mainly attributable to working capital movements arising from the timing of subsidy receipts.

“Net cash used in investing activities was lower by RM45.4mil, mainly due to lower capital expenditure incurred, coupled with higher interest income earned during the period.

“Net cash used in financing activities decreased by RM10.6mil mainly due to lower dividends paid during the period,” said PetDag.

In addition, it said total assets stood at RM12.7bil, representing an increase of RM1.58bil or 14%, primarily driven by higher trade and other receivables, coupled with higher cash and cash equivalents.

“Total liabilities increased by RM1.53bil or 30%, largely due to higher trade and other payables,” it said.

The group proposed a dividend of 25 sen for 2Q26, bringing total dividends declared in FY26 to 43 sen, a one-sen improvement from 1H25.

In a filing with Bursa Malaysia, PetDag said despite external headwinds, Malaysia’s domestic demand fundamentals are expected to remain supportive, underpinned by continued household spending, steady tourism activity and manageable inflation.

In navigating this externally challenging environment, PetDag said it would continue to respond proactively to evolving market conditions and regulatory policies, while maintaining operational excellence and business resilience.