Petron’s net profit slips to RM225mil, revenue up 16pct to RM12bil

February 22, 2019 editor

KUALA LUMPUR: Petron Malaysia Refining & Marketing Bhd posted RM224.54 million net profit in the year ended December 31 2018, down 44 per cent from RM405.17 million previousy.

The company, however, ended 2018 with total revenues of RM12 billion, a 16 per cent increase from the RM10.4 billion posted in 2017.

For the fourth quarter, Petron slipped into the red with a net loss of RM25.55 million compared with the RM99.57 million net profit a year ago.

This mainly due to high inventory losses, the company said in a statement today.

From an upward trend in July to October, Petron said dated Brent had dropped significantly in November and December.

It incurred inventory holding losses towards the end of the year as prices plunged by almost 30 per cent to US$57 per barrel in December from US$81 per barrel in October.

The higher revenue was buoyed by higher international prices and steady growth in sales volume.

Its total sales volume during the year reached 35.5 million barrels, up two per cent from the 34.9 million barrels sold in the previous year.

The company underwent a scheduled maintenance for its Port Dickson Refinery in October which reduced the production of export products Low Sulfur Waxy Residue and Naphtha.

While exports were down, Petron said domestic sales particularly in the retail sector continued to grow during the period.

The company attributed the positive trend in retail sales to higher demand for high-performance fuels such as Blaze 100 Euro 4M and Turbo Diesel Euro 5 complemented by a more rewarding Petron Miles loyalty card program.

“Despite a challenging business environment, we remain focused on strengthening our high-value segments such as retail. We also continue to prioritise programs aimed at reaching more customers while enhancing customer experience,” said chairman Ramon S Ang.

Petron continued to grow its number of stations in 2018 to more than 640 stations together with its sister companies, Petron Fuel International Sdn Bhd and Petron Oil (M) Sdn Bhd.

Source : NST