KUALA LUMPUR: Petronas Dagangan Bhd (PDB) has signed six additional agreements to sell its working stock and hulks in the storage tank of selected fuel terminals to Petco Trading Labuan Company Ltd, an indirect unit wholly owned by Petroliam Nasional Bhd, for 132.93 million RM.
In a filing with Bursa Malaysia today, he said a total of 14 select fuel terminals have been identified for the implementation of the New Operating Model (NOM) to be run in phases depending on the product and operational readiness.
“PDB has agreed to sell working inventory and deadstock to Petco Trading Labuan (PTLCL) with individual contracts concluded in phases for the 14 fuel terminals,” it said today in a document filed with Bursa Malaysia.
He said the implementation of the NOM included Senari Independent Petroleum Terminal, Tanjung Manis Central Petroleum Distribution Terminal, Klang Valley Fuel Distribution Terminal, PST Tawau Fuel Terminal, PST Bintulu Fuel and Kuala Lumpur International Airport Aviation Terminal.
“With this project, Petco Trading Labuan has taken over ownership of all inventory, managing inventory management processes and shipments for PDBs at selected terminals,” he said.
He said that by managing end-to-end inventory management processes, Petco Trading Labuan would be able to optimize and ensure the product is more competitive for PDB.
“Transferring ownership of stocks from PDB to Petco Trading Labuan will eliminate the exposure of the movement of Singapore Flat Means (MOPS) to PDB, especially when MOPS is on a downtrend, which will impact the price competitiveness of the products as well as the loss of lag,” it said.
PDB said proceeds from the transaction would be used for the company’s day-to-day operational expenses.
He added that the transaction has no material impact on PDB’s earnings per share for the year ended December 31, 2022.
At the close, shares of PDB rose 2.94% to RM21.68 with 291,000 shares traded. – Bernama