Malaysia: Petronas Considers ExxonMobil Network
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Monday, 28 July 2008 |
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Petronas
Dagangan Bhd may consider buying Esso and Mobil petrol stations if
Exxon Mobil decides to exit the retail business in Malaysia.
Its chaiman Datuk
Anuar Ahmad said the company would look at any opportunities on the
table. “We would consider both organic and inorganic growth,” he said. However, he added that Petronas Dagangan was not in dicussion with Exxon Mobil yet.
Exxon Mobil
Corporation reportedly said on June 12 (see PetrolWorld Archives 160608) that it was getting out of the petrol retail business in the US and might consider doing so in other
regions as its margins were being squeezed by sky-high crude oil
prices. The US oil company currently operates 530 petrol stations in
Malaysia.
Anuar said Petronas
Dagangan, the retail arm of Petroliam Nasional Bhd, planned to spend
RM500 million to add up to 50 new petrol stations in its current
financial year ending March 31, 2009. As at March 31, 2008, the company had RM547.9 million in cash and cash equivalents and zero borrowings.
Meanwhile, Anuar said
Petronas Dagangan was unlikely to enjoy a higher profit margin under
the revised automatic pricing mechanism (APM) formula and the reduction
in fuel subsidies.
The government had on
June 25 increased the commission for petrol station operators for
petrol and diesel sales to 12.19 sen and seven sen per litre from 9.5
sen and 4.5 sen per litre respectively, to mitigate the impact of the
new subsidy structure on the operators.
PetrolWorld 260708
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