Sunday, September 29, 2013

PetDag - it is not just a petrol station operation

It is not just a petrol station operator. Granted the company runs more than 100 stations nationwide but it is also making good profits from providing aircraft at both domestic and intl airports with fuel and ancillary services.

PDB is the major fuel supplier for all the airports in the country while Shell and Petron are two other players.

PDB commanded 67% of the domestic market in the second quarter of 2013.

On the foreign, PDB’s wholly owned subsidiary has a presence in five intl airports including the HK Intl Aiport and Heathrow Airports in London.

It also provides technical services to various airlines that fly into Malaysia’s airports and to Engen Petroleum Ltd in South Africa.

Its commercial business, which includes the supply of jet fuel and provision of ancillary services to commercial airlines, generated about 55% of its revenue.

It is also working on getting the business of more airlines in the intl airports where it already operates and is looking to venture into other aviation hubs in the region.

It is crucial for PDB to gain foothold in more intl airpots in Asia to provide its airline customers with a broader range of services.

The group plans to grow its downstream marketing operations in the region.

The supply of jet fuel and also diesel accounts for 80% to 85% of revenue generated by PDB’s commercial business, which means the division’s earnings performance pretty much depends on the flight frequency of the airline customers.

PDB also supplies diesel in bulk to various sectors in Malaysia, such as power generation, upstream oil and gas and manufacturing.

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