KUALA LUMPUR, 25 August 2025 – Petronas Dagangan Bhd (PDB), Malaysia’s leading downstream retail and commercial fuel marketing arm, reported a softer financial performance for the second quarter of 2025 as weaker retail margins and normalising demand weighed on profitability. Despite the decline, the group remained profitable across all segments and declared an interim dividend of 22 sen per share.
Quarterly Performance
For the quarter ended 30 June 2025, PDB’s revenue fell to RM9 billion from RM9.8 billion in the same period last year, representing a 6% decline. The drop was attributed to lower average selling prices, which slipped by 4%, coupled with a 1% reduction in overall sales volume.
Profit after tax (PAT) eased marginally to RM265 million, compared with RM276 million in Q2 2024. Profit before tax (PBT) declined by 6% year-on-year, reflecting reduced gross profit in the Retail segment, although this was partially offset by lower expenditure.
Half-Year Results Show Resilience
On a cumulative basis, PDB delivered RM559 million in PAT for the first half of 2025, up from RM502 million recorded in the same period last year. The improvement stemmed from a stronger performance in the first quarter, underscoring the company’s ability to maintain profitability despite softer second-quarter results.
PBT for the first half rose by 8% to RM783 million, an increase of RM60.1 million from the previous year. This was achieved on the back of tighter cost management, although profitability was affected by less favourable Mean of Platts Singapore (MOPS) price trends, particularly impacting retail margins.
Segmental Analysis
Retail Segment
The Retail division, PDB’s largest revenue contributor, faced notable pressure in Q2. Revenue fell by RM693.8 million, or 7%, mainly due to a 10% drop in sales volume, especially in Diesel, which overshadowed the 4% gain in average selling prices. Segmental PBT contracted by 13% to RM353.4 million, a reduction of RM54.6 million from a year earlier. The decline reflected weaker demand for Diesel and Mogas, compounded by tighter margins under the less favourable MOPS price environment, although the impact was cushioned by lower expenditure.
Commercial Segment
The Commercial division showed a stronger performance, supported by robust demand for Jet A1 aviation fuel and Diesel. Revenue for the segment dropped by RM408.8 million, or 9%, due to a sharp 19% fall in average selling prices. However, this was offset by a 12% increase in sales volume, driving PBT to RM177.8 million, up 9% year-on-year. The rebound highlights recovering aviation activity and resilient industrial fuel demand.
Convenience Segment
Revenue from the convenience business, primarily through Kedai Mesra outlets, slipped by 7% to RM64.2 million compared with the previous year. The dip was attributed to lower merchandise sales, although higher in-store sales from Kedai Mesra partially mitigated the decline.
Dividend and Outlook
Reflecting confidence in its cash flow position, PDB’s board declared an interim dividend of 22 sen per ordinary share for the quarter, continuing its track record of delivering shareholder returns.
Looking ahead, PDB expects market conditions to remain challenging, particularly in the Retail segment, where fuel demand has moderated following the post-pandemic rebound and consumer sentiment is dampened by cautious spending. Volatility in crude oil benchmarks and currency fluctuations may also influence margins in the coming quarters.
However, continued strength in the Commercial segment, particularly in Jet A1 demand amid the ongoing recovery of regional air travel, is expected to provide support. Additionally, the company is placing emphasis on non-fuel growth via its convenience and retail expansion strategy, seeking to offset fuel market volatility with stable, higher-margin revenue streams.
📌 Analysis for The Ledger Asia Readers
PDB’s latest results underline a recurring theme in Malaysia’s downstream energy sector: while retail fuel sales face normalisation and margin compression, commercial and aviation-linked fuel demand remains resilient. Investors should note the company’s strong dividend commitment, underpinned by steady cash generation, even as retail headwinds persist. The interplay between global oil price trends, local consumption patterns, and aviation recovery will be key in shaping PDB’s earnings trajectory for the second half of 2025.
