August 24, 2021

Petronas Trading Shares Hit By 'Golden Rain' After Recording Surge

 It seems that the share price of Petronas Dagangan Bhd showed an aggressive movement by making an increase of 2.13% in the trading session on Bursa Malaysia today.

This follows the company announcing a dividend of 10 sen per share yesterday and stating that net profit in the second quarter increased to RM82.14 million from only RM3.51 million in the same period last year.

At 10.27am, Petronas Dagangan's share price jumped to RM19.04 after gaining 40 sen or 2.13% to RM19.20.

According to a report to Bursa, Petronas Dagangan stated that its revenue recorded an increase to RM5.14 billion for the second quarter ended June 30, 2021 compared to RM2.93 billion last year.

Hong Leong Investment Bank Bhd (HLIB) analyst Low Jin Wu said Petronas Dagangan's core profit and minority interest or core net profit of RM266 million were below HLIB's expectations.

"We expect the sales volume to decline following the ongoing enforcement of roadblocks for states that are still in Phase 1," he said.

However, HLIB is confident that the increase in vaccination rates nationwide will return to normal levels.

Meanwhile, the MIDF Amanah Investment Bank Bhd research team said the company's revenue had jumped 23 times to RM82 million year -on -year but declined 57% quarter -on -quarter.