- PETRONAS Dagangan Berhad

PETRONAS DAGANGAN BERHAD
YTD June 2011 ANALYST BRIEFING
11 August 2011
Il
Dahlia Room, Intercontinental Hotel,
Jalan Ampang, Kuala Lumpur.
CONTENT
1. MD/CEO’s Message
2. Financial Review for YTD June 2011
3. Business Performance Review for
YTD June 2011
4. LPG Business Overview
5. Q&A
Financial Review For YTD June 2011
En Rozaini M Sani
General Manager, Finance Services Division
Key Events / Highlights
• PDB achieved higher average selling prices (19.6%) and sales volume
(16.4%) for year to date 30 June 2011 as compared to same period last year.
• This was achieved against the weak external environment which has lead to
the first downgrade of full year gross domestic product (“GDP”) to 5%-6%.
• Malaysia‟s inflation accelerated to the fastest pace in more than two years in
June after power tariffs were raised.
• The US Dollar fell because of lawmakers failed to agree on raising the
nation‟s USD 14.3 trillion debt ceiling, boosting the odds of a default.
• PDB has recently announced an interim dividend of 15 sen per ordinary
shares less 25% tax amounting to RM111,763,575 in respect of financial year
31 December 2011.
Iended
l
Key Financial Highlights
•
YTD 30/06/2011 vs YTD 30/06/2010
30/06/2010
•
As at 30/06/2011 vs As at 31/03/2011
COMPREHENSIVE INCOME
FINANCIAL POSITION
Revenue increased by 38.2% to RM7,539.9
million from RM5,456.5 million
Shareholders funds increased by 4.4% to
RM5,003.7 million from RM4,794.9 million
Profit Before Tax increased by 4.9% to
RM290.8 million from RM 277.2 million
Cash balances decreased to RM906.7 million
compared to RM1,026.2 million
As at
31/03/2011
As at
30/06/2011
Earnings Per Share (sen)
87.5
84.0*
Return on Revenue (%)
5.2
3.9
Return on Equity (%)
25.2
23.2*
Key Ratios
Return on Total Assets (%)
14.3
12.8*
* Annualised based on year to date figures as at 30 June 2011
Revenue increased mainly as a result of higher sales
volume by 16.4% and higher average selling price by 19.6%
Q1 2011
(RM Mil)
Revenue
+/(%)
7,539.9
Q1 10/11
(RM Mil)
LPG,
337,334 , 4%
Fuel Oil,
628,639 ,
8%
5,456.5
38.2
Aviation,
1,462,202 ,
19%
LPG, 279,890
, 5%
FUEL OIL,
221,062 , 4%
Others,
218,336 , 3%
Lube,
112,611 , 2%
LUB, 95,651 , 2%
Mogas,
2,095,595 ,
28%
Diesel,
2,685,209 ,
36%
OTHERS,
130,595 , 2%
Q1
2011
MOGAS,
1,918,932 , 35%
AVIATION,
957,193 , 18%
Il
DIESEL,
1,853,149 , 34%
Q1
10/11
Gross Profit increased by 13.4% mainly contributed by
higher gross profit for Mogas by 20.1% and Diesel by 17.9%
Q1 2011
(RM Mil)
Gross
Profit
536.6
+/(%)
Q1 10/11
(RM Mil)
13.4
473.2
Lube 26,141
LPG 46,547
5%
9%
Others
28,344 5%
Fuel Oil 8,320
2%
Mogas
226,979 42%
Aviation
37,544 7%
Diesel
162,772 30%
LPG 48,739 10%
Lube 23,178 5%
Others 8,894 2%
Q1
2011
Fuel Oil 9,787 2%
Il
Mogas 188,940
40%
Aviation 55,687
12%
Diesel 137,982
29%
Q1
10/11
Profit before tax in Qtr 1, FY2011 improved by RM13.6 million as a result
of higher gross profit and higher other income but offset by higher OPEX
Profit Before Taxation
RM’Mill
RM’Mill
OPEX
300
290.8
300
280.8
226.2
250
290
Other Income
200
277.2
280
150
100
34.8
270
50
30.0
0
260
QTR 1, FY2011
250
QTR 1, FY2011
QTR 1, FY2010/11
QTR 1, FY2010/11
Shareholder’s funds and cash balance remain
strong.
Shareholder’s Funds
RM Million
RM Million
5,003.7
5,100
5,000
4,900
Cash Balance
1,026.5
1040
990
4,794.9
906.7
940
4,800
890
4,700
4,600
840
4,500
Il
790
4,400
740
4,300
31/03/2011
30/06/2011
31/03/2011
30/06/2011
Cash balance remains healthy to support CAPEX and
working capital
RM’Mill
1,500
Cash and bank
Deposits
1,437
Total
1,350
1,200
1,145
1,050
1,015
900
875
1,026
1,020
912
863
751
538
0
707
479
450
Il
150
907
836
666
653
300
1,026
880
826
750
600
1,138
299
210
271
190
269
267
140
147
200
86
31.03.09 30.06.09 30.09.09 31.12.09 31.03.10 30.06.10 30.09.10 31.12.10 31.03.11 30.06.11
PDB Share outperform KLCI performance.
KLCI Index
RM per Share
1700
KLCI
PETDAG
1600
1500
1400
1,346
1,319
1,285
1,271 1,266
1300
18
17.82
16.50
17
1548.81
1519.94
16
1496.94
15
1,422
13.50
14
1,361
12.08
11.00
1,206
1,164
1200
1100
1000
1,020
7.20
6.55
854
900I l
800
7.35
882
1,048 8.55
7.907.90
10.17
8.60
8.92
8.70
9.05
9.27
8.85
11.30
13
12
11
10
9
8
885
7
6
5
Earnings Per Share (EPS)
100
87.5
90
75.8
80
64.5
70
60
84.0*
75.7
66.6
50.8
50
40
30
21.2
20
10
FY2004/05 FY2005/06 FY2006/07 FY2007/08 FY2008/09 FY2009/10 FY2010/11
Il
FY 2011
*Annualised based on quarter 1 financial results
PDB P/E
Market PE
FY
2005/06
7.99
13.15
FY
2006/07
9.53
16.07
FY
2007/08
12.01
13.29
FY
2008/09
13.57
13.68
FY
2009/10
11.96
18.86
FY
2010/2011
FY 2011
18.85
16.80
21.83
17.21
PDB’s dividend yield remain higher than market dividend
yield
8.00
6.70
7.00
6.00
5.62
4.93
5.00
4.00
3.00
3.73
3.36
5.61
5.00
4.77
3.38
5.70
4.88
4.64
6.50
5.02
3.90
3.45
3.65
3.67
2.83
PDB Dividend Yield - With Special
Dividend
PDB Dividend Yield - Without Special
Dividend
Market Dividend Yield
2.00
Il
1.00
0.00
FY2004/05
FY2005/06
FY2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11
FY 2011
Thank you
Business Performance Review For YTD June 2011
En Ahmad Kushaini Ramli
Senior Manager, Strategic Planning Division
1. Malaysian Economic
2. Business Performance
3. Business Outlook and Key Focus Area
Sustained growth supported by continued strong domestic and
external demand
• Malaysia‟s economic growth is projected to grow moderately in Q2 2011 sustained by the
strengthening of private investments amid an improving export.
• Gross exports recorded double digit growth of 11.1% in April and 8.6% in June contributed by
higher exports of LNG to Japan to meet their power demand due to the nuclear mishap and
increased in non-manufacturing products.
•The Business Sentiment Index (BSI) also is to pick in Q2 as implementation of ETP projects is
expected to increase the growth outlook of the construction sector.
Source : CIRU-PETRONAS& BNM
Impressive volume growth despite moderate economic growth
YTD Volume
4,000.0
3,815.3
Mil Litres
3,750.0
3,500.0
3,279.2
3,250.0
16.4 %
3,000.0
SPLY
YTD June FY2011
• YTD June volume is above SPLY by 16.4% against SPLY.
• Growth in Q1 was mainly contributed by higher Diesel, Aviation, Fuel Oil, and LPG
sales.
RETAIL BUSINESS
COMMERCIAL BUSINESS
LPG BUSINESS
LUBRICANTS BUSINESS
Key achievement and activities from June – August FY2011
Achievement
 On 13th July 2011, PDB was awarded the Best Stock Performance at the
2011 Billion Ringgit Club Awards by The Edge at the prestigious Shangri-La
Hotel, Kuala Lumpur
PDB has gained trust of PPB Oil Palm Berhad to put their lubricant on trial at it
one of the biggest palm oil players in Sabah.
Activities
 PDB rewarded 153 lucky winners of the PETRONAS The Road to Rewards –
Kedai Mesra campaign with exciting prizes worth RM200,000, amidst much
fanfare and celebrations on 14 June 2011.
 PDB launched their 60th Gas PETRONAS New Premier Dealer & Premise on
12 June 2011 in Batu Caves, Selangor.
 PDB has sponsored Perodua Eco Challenge at the Melaka International
Motorsport Circuit (MIMC) on 25th June 2011.
 On 17th June 2011, Trading Area N7 (North 2) has sponsored Politeknik
Ungku Omar‟s Convoy „ Kembara Kemasyarakatan Bermotosikal & Berakit
PUO 2011‟. 100 motorcycles and 10 cars participated in the convoy.
 On 6th July 2011, LPG Sales Central Region conducted an appreciation cum
engagement session for all its direct customers at Tower 2, KLCC.
Positive economic growth outlook for 2H 2011.
• Malaysia’s economic growth is expected to strengthen in 2H 2011 in anticipation of recovery in US in EU
economies as well as strong economic performance of China and India.
• However, growth is expected to rebound further towards year-end as its strong domestic economic
fundamentals and policy flexibility are expected to increase the resilience and improve its ability to
manage these challenges. Malaysia’s GDP will grow by 5.5% in 2011.
• Improving FDI in 2011 to be driven by the implementation of ETP projects.
Source : CIRU-PETRONAS & BNM
Key Focus Area
• Retail Business
• Achieving market leadership
• Increasing throughput volume
• Opening new stations
• Commercial Business
• Maintain and strengthen market
leadership
• Focus on primary target market
and quality customers
• LPG Business
• Maintain market leadership
• Improve
on
product
network
availability and customer service
• Lube Business
• Aggressive market penetration
• Expand product range to include
fighting brand
Thank you
LPG Business Overview
En Zubair Abdul Razak
General Manager, LPG Business Division
1. Overview
2. Role of LPG Business
3. LPG Supply Chain
4. Product Offerings and
Customers
5. Marketing Channels
6. Contribution to PDB
7. Moving Forward
Marketing of LPG products in cylinders and bulk
to Household consumers and
Commercial/Industrial customers
Supply
PETRONAS
System
• Refineries
• Gas Processing Plants
• TTM Pipeline
Import
• PETCO (Spot/Term)
Shell
• Location exchange
• Hospitality arrangement
• Joint-freighting
arrangement
3rd Party
Supply
Primary Distribution
Terminal
Secondary Distribution
Pasir Gudang
Port Klang
Prai
Bintulu
Melaka
Tawau
Kuching
Sepangar Bay
Kerteh
Customers
LPG Bottling Terminals
Sepangar Bay
Prai
Tawau
Kertih
Bintulu
Kuching
Port Klang
Melaka
Pasir Gudang
HOUSEHOLD/DOMESTI
C
• C12kg Domestic
• C14kg Domestic
COMMERCIAL
• C50kg Vapour Withdrawal
• C50kg Liquid Withdrawal
• C50kg Liquid Withdrawal with manifold system
INDUSTRIAL
• Bulk Tanks
LPG Cylinders
LPG Bulk
LPG Bottling Plants
LPG Bottling Plants
Premier Dealers
Bulk Dealers
Dealers
End Consumers
End Customers
LPG contributes 10% to PDB’s Volume
Revenue
Volume Breakdown
By Product
50kg
1.9%
Bulk
8.8%
LPG
5.2%
12kg
20.1%
Total PDB :
RM 23.2 Bil
NPBT
LPG
11.5%
14kg
69.2%
Total PDB :
RM 1.58 Bil
Note: Figures are as at FY 2010/11
2011
52%
2009 – 50%
2005 – 45%
2002 – 40%
1999 - 33%
Sales contribution by Region FY2010/11
SARAWAK
SABAH 10%
9%
CENTRAL
28%
EAST
13%
SOUTH
18%
NORTH
22%
LPG Business is ISO 9001:2008 certified by SIRIM
 International Standard Work Processes &
Procedures
 Quality Assurance
 Continuous Improvement
• Tapping on New Growth Opportunities
• Offer Convenience through One-CallOrder-Centre
• Expand Availability
THANK YOU