Petronas Dagangan focuses on non-fuel segment, ventures into e-commerce

KUALA LUMPUR: Petronas Dagangan Bhd (PetDag) says it will focus on non-fuel segment to buffer uncertainties in the oil and gas sector and venture into e-commerce platforms to boost revenue.

PetDag chairman Datuk Md Arif Mahmood said it had offered both of its lubricants and merchandise on Shopee.

“We are pushing out beyond just the physical presence in terms of revenue generation. We hope with the vaccination programme, the movement control order situation will be lifted to boost economic activities, maybe in the second half of this year,” Md Arif told a press conference after PetDag’s virtual annual general meeting (AGM) today.

PetDag remains cautious on its outlook for the retail segment despite the uncertainty led by the increasing numbers of Covid-19 infections and limited interstate travel.

Md Arif said it had seen some optimism and increased numbers of consumers in March, but the group would remain cautious given the restriction that was going to be imposed during the Hari Raya festival.

PetDag managing director and chief executive officer Azrul Osman Rani said last year, its retail business had continued to invest in elevating customers’ experience by expanding and upgrading its network of stations.

Azrul said the introduction of the Petronas Primax 97 with Pro-Race fuel had garnered positive testimonials.

“The business also capitalised on food-to-go solutions by introducing Makan@Mesra, gradually expanding its menu based on customer demand.

“In addition, it digitalised the Mesra Redemption Portal and integrated it with the Setel app, making redemption more convenient for customers. The retail business will continue to deliver innovative solutions that meet the group’s customers’ changing needs,” he said.

Azrul said PetDag had diversified its product portfolio to include the marketing of liquefied natural gas (LNG) as a cleaner fuel option.

The group, through Petronas Group’s Virtual Pipeline System (VPS), is now the first in Malaysia to supply LNG via road tankers to off-grid customers.

Additionally, it is marketing LNG to the marine industry via Petronas’ first LNG bunkering vessel (LBV) MV Avenir Advantage, which allows for ship-to-ship transfer – the first in Southeast Asia to offer such a solution.

“This allows us to play a key role in facilitating the growth of natural gas usage in support of the national sustainability agenda,” said Azrul.

In addition to the four core businesses, Azrul said PetDag would leverage its digital and innovative ventures including Setel, Malaysia’s first e-payment solution that enables fuel purchases directly from mobile devices; ROVR, Malaysia’s first mobile refueling service for commercial customers; and PRYSM, its newly-launched merchandise brand.

“We continue to upgrade the Setel app for an improved user experience. New features include a Setel wallet where customers can now use via app to pay at Kedai Mesra nationwide, as well as Deliver2Me where selected purchases from over 140 Kedai Mesra outlets will be delivered directly to the vehicle,” he said.

Elaborating on PetDag’s performance, Azrul said the group was quick to adapt to the changing market last year and ensured the business remains profitable.

“Despite the uncertainties, we maintained our market leadership, reflecting our resilience in times of adversity. As part of future-proofing PetDag, we have exciting plans in the pipeline that will help us identify new revenue streams as well as deliver on our brand promise.”

Source: NST