KUALA LUMPUR: Petronas Dagangan Bhd (PDB) has signed six additional agreements to sell its working inventory and deadstock in the storage tank at selected fuel terminals to Petco Trading Labuan Company Ltd, an indirect wholly-owned unit of Petroliam Nasional Bhd, for RM132.93 million.
In a filing with Bursa Malaysia today, it said a total of 14 selected fuel terminals have been identified for new operating model (NOM) implementation to be executed in phases based on product and operational readiness.
"PDB has agreed to sell the working inventory and deadstock to Petco Trading Labuan (PTLCL) with individual contracts entered in phases for the 14 fuel terminals,” it said in a filing with Bursa Malaysia today.
It said the NOM implementation is in respect of Senari Independent Oil Terminal, Tanjung Manis Central Oil Distribution Terminal, Klang Valley Distribution Fuel Terminal, PST Tawau Fuel Terminal, PST Bintulu Fuel Terminal and Kuala Lumpur International Airport Aviation Terminal.
"With this project, Petco Trading Labuan has taken over the ownership of all inventories, managing the inventory management processes and shipments for PDB at the selected terminals,” it said.
It said by managing the end-to-end inventory management processes, Petco Trading Labuan would be able to optimise and ensure the product is more competitive for PDB.
"The transfer of inventory ownership from PDB to Petco Trading Labuan will eliminate the exposure of means of plats Singapore (MOPS) movement to PDB especially when MOPS is on a downward trend which will have an impact to product price competitiveness as well as lag loss,” it said.
PDB said the proceeds from the transaction would be utilised for the day-to-day operational expenditure requirement of the company.
It added that the transaction has no material impact on the earnings per share of PDB for the financial year ending Dec 31, 2022.
At close, shares of PDB rose 2.94 per cent to RM21.68 with 291,000 shares transacted. - Bernama