Kuala lumpur: Shares of Petronas Dagangan Bhd (PetDag) emerged as one of the top two gainers in early trading today, despite the company reporting a lower net profit for the first quarter ended March 31, 2026 (1Q FY2026). As of 11 am, PetDag's share price had climbed 80 sen to RM18.54, with 866,700 shares changing hands.

According to BERNAMA News Agency, in a filing with Bursa Malaysia on Friday, PetDag reported a lower net profit of RM283 million for the 1Q FY2026 compared with RM293.50 million in the same quarter a year ago, due to higher product costs and expenditure, which reduced the commercial segment's contribution. PetDag said the lower profit was partially offset by higher gross profit from the retail segment following upward movement in Mean of Platts Singapore (MOPS) prices.

Revenue increased to RM11.15 billion during the quarter under review from RM9.09 billion in the previous corresponding quarter, supported by higher average selling prices and stronger sales volumes.

In a research note today, Hong Leong Investment Bank Bhd (HLIB) said it remained constructive on PetDag's overall outlook despite near-term pressure on the commercial segment from softer sales volumes and the temporary lag in passing through elevated jet fuel inventory costs. 'Meanwhile, retail sales volumes are expected to remain stable, underpinned by resilient domestic mobility demand and continued fuel consumption trends. In addition, Petronas has assured that fuel supply remains sufficient until the end of July, alleviating concerns over potential supply disruptions and supporting near-term operational stability,' it added.

HLIB said it raised its FY2026/FY2027 earnings forecasts on PetDag marginally by +0.4 per cent/+0.5 per cent, while also introducing FY2028 estimates. It has also upgraded PetDag to a 'buy' recommendation with a revised target price of RM21.34 from RM21.33.