Annual Report 2007 at PETRONAS Dagangan Berhad, We Are Focused
Total Page:16
File Type:pdf, Size:1020Kb
At PETRONAS Dagangan Berhad, we are focused on achieving sustainable long-term growth. With quality and innovation as the basis of our operations, we will continuously strive to build our position as Malaysia’s ‘Brand of 1st Choice’ for petroleum products. Moving forward, we remain committed in creating optimum value for our community, customers and shareholders. Annual Report 2007 “PRIMAX 3 stretches my ringgit. “After using PRIMAX 3, What our This is the brand that I am my engine runs more smoothly sticking to for sure.” and the pick-up is great.” Vincent Lim Chong Beng Mohd Shukri Helmy bin Mohd Fahmi customers Businessman, Penang Businessman, Kuala Lumpur think “I can see the savings compared with using other brands of fuel.” “We are very satisfi ed with Gas PETRONAS. “PETRONAS Dagangan is the leading Mohd Nawawi bin Rani We use LPG for our kitchen and boiler. fuel supplier, continuously providing Teacher, Terengganu It produces less carbon and jet fuel and refuelling services the supply is timely delivered.” that fulfi ll our requirements.” Putra Rakhish bin Wayer @ Mohd Wazir Abdul Wahid bin Ahmad Shift Engineer, Petaling Jaya Ground Engineer, Kuala Lumpur International Airport “Since using PRIMAX 3, the power has defi nitely got more ummph.” “It really gives me the power to reach my destination in no time.” Wan Muniati Wan Ngah Contractor, Terengganu Shariman bin Arshad Businessman, Kuala Lumpur “Initially, it was diffi cult to convince “We have been using Syntium for one year. our customers to change to PETRONAS Our customers are coming to us to fi nd out Lubricants. Now, our customers are more what we are doing differently now. satisfi ed by using Syntium due to its Syntium does wonders for their cars. We are supreme performance.” now convinced with PETRONAS Syntium.” Erwan Othman Kevin Kong Automotive Mechanic, Kuala Lumpur Marketing Executive, Kuala Lumpur “PRIMAX 3 really saves our money.” “I look for a high performance fuel. Tantiana Nelson & Tijan Hendrick Hank And PRIMAX 3 is the Students, Kuching best I’ve tried.” Shasindran Muthu DJ, Kuala Lumpur PETRONAS DAGANGAN BERHAD (88222-D) 1 Contents 2 Five Year Financial Highlights 47 Corporate Governance 48 Corporate Governance Statement 4 Corporate Profi le 53 Statement on Internal Control 7 Corporate Information 55 Board Audit Committee’s Report 8 Financial Calendar 57 Board Audit Committee’s 9 Corporate Information Terms of Reference 10 Board of Directors 59 Statement of Directors’ Responsibility 12 Profi le of Directors 61 Financial Statements 14 Management Committee 100 Areas of Operation 16 Performance Review 18 Chairman’s Statement 102 Shareholders’ Information 22 CEO’s Report 105 List of Properties 32 Share Performance 33 Crude Oil & Petroleum 130 Notice of Annual General Meeting Product Price Trend 132 Appendix I 34 Corporate Responsibility 140 Statement Accompanying 36 Corporate Social Responsibility Notice of Annual General Meeting 39 Calendar of Events 45 PETRONAS Dagangan in the News Proxy Form NOTICE IS HEREBY GIVEN THAT the Twenty-Fifth Annual General Meeting of PETRONAS Dagangan Berhad (the Company) will be held on Tuesday, 10 July 2007 at 10.00 a.m. at the Ballroom 1, Level 2, Hotel Nikko Kuala Lumpur, 165, Jalan Ampang, 50450 Kuala Lumpur. 2 PETRONAS DAGANGAN BERHAD (88222-D) Five year Profit RM million 903.2 724.6 640.3 555.2 504.7 381.2 330.1 230.7 210.7 150.0 ‘03 ‘04 ‘05 ‘06 ‘07 Profit as % of Revenue Percent 5.6 4.6 4.4 3.9 3.3 3.0 2.7 2.6 1.7 1.7 ‘03 ‘04 ‘05 ‘06 ‘07 Profit Before Tax Net Profit Attributable to Shareholders of the Company PETRONAS DAGANGAN BERHAD (88222-D) 3 Financial Highlights Revenue Equity Attributable to Shareholders Capital Expenditure RM million of the Company RM million RM million 3,487.8 19,496.4 16,567.9 3,026.3 614.6 12,451.1 592.9 2,643.5 2,540.1 9,830.4 8,970.5 498.8 496.0 2,266.2 473.1 ‘03 ‘04 ‘05 ‘06 ‘07 ‘03 ‘04 ‘05 ‘06 ‘07 ‘03 ‘04 ‘05 ‘06 ‘07 Total Assets Net Assets per share Earnings per share RM million Sen Sen 64.5 351.1 6,516.9 6,139.7 6,170.9 50.8 304.6 38.4 4,711.5 266.1 255.7 21.2 3,689.6 228.1 15.0 ‘03 ‘04 ‘05 ‘06 ‘07 ‘03 ‘04 ‘05 ‘06 ‘07 ‘03 ‘04 ‘05 ‘06 ‘07 The Net Assets per share and Earnings per share for the comparative periods are based on the enlarged share capital restated for the effect of the bonus issue in the fi nancial year 2005. The effect of the new Financial Reporting Standards (FRSs) is refl ected for the comparative period of fi nancial year 2006 only. 4 PETRONAS DAGANGAN BERHAD (88222-D) Corporate PETRONAS Dagangan Berhad (the Company) was incorporated in Malaysia under the Companies Act 1965 on 5 August 1982 and was converted to a public company on 21 August 1993. Shares of the Company were listed on the Main Board of Bursa Malaysia Securities Berhad on 8 March 1994. The Company is the principal domestic marketing arm of Petroliam Nasional Berhad (PETRONAS), the national oil company, which holds 69.86% of its equity. The Company markets a wide range of high quality petroleum products including motor gasoline, aviation fuel, kerosene, diesel, fuel oil, bunker fuel, lubricants, liquefi ed petroleum gas (LPG) and asphalt in Malaysia. The market for petroleum products is highly competitive, with major multinational corporations competing for sales of fuels to consumers which include motorists, households, airlines, shipping lines, transporters, plantations, processing and manufacturing plants, power stations and commercial enterprises. The Company’s products have enjoyed high market acceptance and customer confi dence, as evidenced by its rapid sales growth over the years. The Company markets its products throughout the country, directly to customers as well as through its network of service stations, LPG dealers and industrial dealers. Its marketing activities are well supported by a comprehensive logistics and distribution system consisting of bulk depots, aviation depots, bunkering facilities and LPG bottling plants, all strategically located to ensure a reliable supply of products at all times. The Company has a sophisticated Customer Service Centre to serve its customers better. PETRONAS DAGANGAN BERHAD (88222-D) 5 Profi le 6 PETRONAS DAGANGAN BERHAD (88222-D) PETRONAS DAGANGAN BERHAD (88222-D) 7 Corporate Information 8 Financial Calendar 9 Corporate Information 10 Board of Directors 12 Profi le of Directors 14 Management Committee 8 PETRONAS DAGANGAN BERHAD (88222-D) Financial Calendar 29 AUGUST 2006 8 SEPTEMBER 2006 Announcement of the unaudited consolidated results Date of payment of the 2005/2006 fi nal dividend for the 1st quarter ended 30 June 2006 30 NOVEMBER 2006 28 DECEMBER 2006 Announcement of the unaudited consolidated results for Date of payment of the 2006/2007 interim dividend the 2nd quarter ended 30 September 2006 26 FEBRUARY 2007 31 MARCH 2007 Announcement of the unaudited consolidated results Date of fi nancial year end for the 3rd quarter ended 31 December 2006 28 MAY 2007 18 JUNE 2007 Announcement of the unaudited consolidated results Date of Notice of 25th Annual General Meeting and for the 4th quarter and fi nancial year ended date of issuance of 2007 Annual Report 31 March 2007 10 JULY 2007 23 AUGUST 2007 Date of 25th Annual General Meeting Date of payment of the 2006/2007 fi nal dividend PETRONAS DAGANGAN BERHAD (88222-D) 9 Corporate Information DIRECTORS REGISTRAR BANKERS Datuk Anuar bin Ahmad (Chairman) Symphony Share Registrars Sdn. Bhd. CIMB Bank Berhad Ibrahim bin Marsidi Level 26, Menara Multi Purpose Malayan Banking Berhad Dato’ Chew Kong Seng Capital Square Dr. R. Thillainathan No. 8 Jalan Munshi Abdullah STOCK EXCHANGE LISTING Dato’ Kamaruddin bin Mohd Jamal 50100 Kuala Lumpur Datuk Ainon Marziah bt Wahi Tel : (03) 2721 2222 Bursa Malaysia Securities Berhad Mohammad Medan bin Abdullah Fax : (03) 2721 2530 / 2721 2531 Main Board BOARD AUDIT COMMITTEE REGISTERED ADDRESS AUDITORS Dato’ Chew Kong Seng (Chairman) Tower 1 KPMG Desa Megat & Co. Dr. R. Thillainathan PETRONAS Twin Towers Dato’ Kamaruddin bin Mohd Jamal Kuala Lumpur City Centre Mohammad Medan bin Abdullah 50088 Kuala Lumpur Tel : (03) 2051 5000 Fax : (03) 2026 5505 COMPANY SECRETARIES Noor Lily Zuriati bt Abdullah Yeap Kok Leong BUSINESS ADDRESS Level 30-33, Tower 1 PETRONAS Twin Towers Kuala Lumpur City Centre 50088 Kuala Lumpur Tel : (03) 2051 5000 Fax : (03) 2026 5505 Website : www.mymesra.com.my Mesralink Tel : 1-300-88-8181 E-mail : [email protected] 10 PETRONAS DAGANGAN BERHAD (88222-D) Board of Directors From Left: Datuk Anuar bin Ahmad (Chairman) Ibrahim bin Marsidi Dato’ Chew Kong Seng Dr. R. Thillainathan Dato’ Kamaruddin bin Mohd Jamal Datuk Ainon Marziah bt Wahi Mohammad Medan bin Abdullah Noor Lily Zuriati bt Abdullah (Company Secretary) Yeap Kok Leong (Company Secretary) PETRONAS DAGANGAN BERHAD (88222-D) 11 12 PETRONAS DAGANGAN BERHAD (88222-D) Profi le of Directors Datuk Anuar bin Ahmad, a Malaysian aged 53, is a Non- Dato’ Chew Kong Seng, a Malaysian aged 69, is an Independent Independent Non-Executive Director. He was appointed as Chairman Non-Executive Director and the Chairman of the Board Audit of PETRONAS Dagangan Berhad on 3 October 2005. He holds a Committee. He is a Fellow of the Institute of Chartered Accountants Bachelor of Science Degree (Econs) from the London School of in England and Wales and a member of the Malaysian Institute Economics & Political Science, University of London and had attended of Certifi ed Public Accountants and the Malaysian Institute of Harvard Business School’s Advanced Management Programme Accountants.