Petron bottom line down in first quarter

PETALING JAYA: Petron Malaysia Refining & Marketing Bhd’s net profit for the first quarter ended March 31 fell 33.55% to RM72.12 million from RM108.54 million a year ago.
In a filing with Bursa Malaysia today, the group said its pre-tax profit was lower at RM96 million compared with RM119 million reported a year ago, while net income for the quarter fell to RM72 million from RM109 million a year ago.
Revenue for the quarter rose 6.66% to RM2.73 billion from RM2.56 billion a year ago due to growth in sales volume and higher oil prices.
Total sales volume reached 8.7 million barrels, reflecting a 4% increase from 8.3 million barrels last year, driven by the growth in domestic volumes.
Dated Brent averaged US$67 per barrel during the quarter compared with US$54 per barrel in the same period last year, and about 10% higher or US$10 per barrel from the US$61 average in the fourth quarter of 2017.
Cost of crude significantly increased resulting in lower refining margins. Gross margin for the quarter settled at RM114.7 million, which was 37% lower from a year ago. The drop in margins was partly cushioned by lower financing charges during the quarter.
Moving forward, the group expects more uncertainty in oil prices with the US pulling out of the Iran nuclear deal but will continue to maintain a robust risk management system to mitigate exposures to such uncertainty.
“The company’s sustained financial performance proved that the company’s plans and programmes have been effective. With the positive outlook on Malaysian economy with stable growth and domestic demand, the company will continue to enhance promotions of innovative products, strengthen partnerships and explore new opportunities,” it said.
Petron’s share price fell 4.09% or 35 sen to close at RM8.21 today with a total of 394,200 shares traded.