Malaysia: Petronas Dagangan to take financial pressure off site operators
Petronas Dagangan Bhd to open 10 to 15 sites in Malaysia despite focus set on refurbishment and upgrade of existing sites.
Malaysian retailer Petronas will focus on improving its current network of service stations and convenience stores by expanding its services instead of increasing its number of sites, said Chairman Datuk Md Arif Mahmood.
The distribution arm from Petroliam Nasional Bhd wants to ease the current pressure on petrol station operators by giving sales incentives and set profit margins. The retailing company currently has the biggest network in Malaysia with around 1,045 stations. By investing in convenience, they hope to mitigate the effects of volatile weekly fuel prices on site operators, reports The Star.
“We are focusing more on upgrading our existing stations and particularly our convenience stores to boost sales,” said Arif Mahmood to reporters at the company’s general annual meeting.
PetDag registered a 68.7% increase in net profit in 2017 to RM1.59 billion on the back of a revenue of RM26.74 billion, up 24.2% year-on-year.
