Tuesday, 17 February 2015

Petronas Dagangan

The stock price has risen from MR 2.00 in 2000 to MR 4.00 in 2005.

It has risen from MR 4.00 in 2005 to MR 8.00 in 2010.

From MR 8.00 in 2010, it has risen to MR 17.00 in 2015..

From 2000 to 2015, this stock has delivered multi-bagger returns.

Between 2000 to 2015, there were 3 big dips in the price of the stock, in 2001, 2009 and recent months.

Don't forget to add the GROWING dividends!

Latest February 2015  Special Dividend  0.22 
18 Nov 20140.12 Dividend
21 Aug 20140.14 Dividend
21 May 20140.12 Dividend
20 Feb 20140.175 Dividend
14 Nov 20130.175 Dividend
4 Sep 20130.175 Dividend
10 Jun 20130.175 Dividend
7 Mar 20130.175 Dividend
12 Dec 20120.175 Dividend
4 Sep 20120.175 Dividend
4 Jun 20120.175 Dividend
8 Mar 20120.15 Dividend
7 Dec 20110.15 Dividend
24 Aug 20110.15 Dividend
1 Aug 20110.35 Dividend
9 Dec 20100.30 Dividend
24 Feb 20052: 1 Stock Split
Close price adjusted for dividends and splits.

3 Aug 20100.15 Dividend
7 Dec 20090.15 Dividend
5 Aug 20090.33 Dividend
10 Dec 20080.12 Dividend
1 Aug 20080.33 Dividend
14 Dec 20070.12 Dividend
12 Dec 20050.05 Dividend
17 Aug 20050.10 Dividend
30 Nov 20040.10 Dividend
5 Aug 20040.20 Dividend
10 Dec 20030.20 Dividend
23 Jul 20030.10 Dividend
22 Jul 20030.10 Dividend
Close price adjusted for dividends and splits.

Comments:  5.2.2015

Revenue - Lower due to Decrease in Sales volume

Group Operating Profit  -  Lower due to lower gross margin and higher operating expenditure.

1.  Lower gross profit margin - Lower due to higher product cost due to unfavourable timing differences of the Mean of Platts Singapore ("MOPS"Smiley prices compared to corresponding quarter last year.

2.  Higher operating expenditure - mainly attributed to manpower expenses, ICT maintenance charges, advertising and promotion and net loss on foreign currency as US dollar weakened against Malaysian Ringgit during the current period compared to net gain on foreign currency during the corresponding period last year.

Increase in revenue - due to higher selling price 

Decrease in revenue - due to decrease in sales volume, despite a higher average selling price.

The downward trend in global oil prices has an adverse impact on PDB's margins.  

PDB's business is expected to be challenging as long as the downward trend is expected to continue.

How to defend its overall market leadership position?

1. Grow its business domestically - further strengthening its brand, sweating existing assets and continuosly enhancing customer relationship management.

2.  Continue its cost optimisation efforts - enhancement of supply and distribution efficienecy, improvement of terminal operational excellence to further improve cost of operations.


Results of PDB will be affected adversely when:

1.  US currency is weakening.  Cash

2.  The global oil price is trending downwards.    Cash

Do you think the fundamentals of PDB are permanently damaged or they are facing a temporary period of difficulties or challenges?   Smiley

How can PDB delivers better results?

1.  Increasing its volume sold.
2.  Lower average selling prices may lead to increase in volume sold.
3.  Operational efficiency - cost and expense minimisation - leading to increasing profit margins.
4.  When US dollar is appreciating or getting stronger.
5.  When global oil price is stabilised or increasing in price trend.

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