PETRONAS Dagangan sets aside RM400 million for capital expenditure

Petronas Dagangan is allocating about RM400 million in capital expenditure (capex) to finance the expansion of its operations this year, says Managing Director/Chief Executive Officer Mohd Ibrahimnuddin Mohd Yunus.

"Most of the capex will be used to add between 15 and 20 petrol stations, but on location, it will depend on the market demand," he told reporters at the launch of a retail campaign for 'Kad Mesra' holders here.

Petronas Dagangan is a leading retailer and marketer of downstream oil and gas products.

Its retail business has grown to become Malaysia's largest petroleum retail network with over 1,000 stations and 725 Kedai Mesra throughout the country.

The retail campaign for 'Kad Mesra' is among the on-going initiatives introduced by the company to provide added value to customers through its extensive retail network.

Meanwhile, Mohd Ibrahimnuddin said the company would maintain its strategies this year, including being prudent in its inventory management in tackling the decline in global oil prices.

Petronas Dagangan would also continue with its optimal cost cutting measures, he said, adding that the measures have worked well for the company.

"We have put in strategies that have been in placed in 2015 and we still feel that they are applicable for 2016.

"We expect 2016 to be a tough year. We have no idea how tough it is going to be but whatever the market is facing we have our plans in place.

"These strategies will also move forward the company in the future," Mohd Ibrahimnuddin said.