KUALA LUMPUR: Petron Malaysia Refining and Marketing Bhd’s (Petron) net profit for the financial year ended Dec 31, 2019 (FY19) fell to RM177.1 mil from RM224.5 mil in FY18 as revenue decreased to RM11.45 bil from RM12.04 bil previously.
In a statement today, Petron said the company posted an operating income of RM265 mil in FY19, up 14% from RM233 mil in 2018.
“However, the required mark-to-market valuation of inventory led to unrealised losses, resulting in net income for the year dropping by 21% to RM177.1 mil compared to RM224.5 mil in 2018,” it said, adding that the company’s sales in FY19 grew by 2% over the previous financial year.
It generated a total sales of 36.3 million barrels.
Petron said it opened 57 new stations during the financial year, bringing the company’s total stations to about 700.
It added that Petron’s liquefied petroleum gas under the Gasul brand has also reached more households with the expansion of its distribution network and the introduction of self-pickup points at more Petron stations for the convenience of its customers.
On the fourth quarter, Petron said it recorded a net profit of RM28.96 mil from a net loss of RM25.54 mil in the same quarter of the previous financial year.
Its revenue increased slightly to RM2.91 bil from RM2.89 bil previously.
Petron said it recorded sales of 9.2 million barrels in the quarter, 6% higher than the 8.6 million barrels sold in the same quarter of 2018.
However, it said revenue for the quarter almost flat due to slightly lower prices of petroleum products in the region during the period as compared to the fourth quarter of the preceding year.
“The heightened political tensions among oil-producing countries pushed up crude premiums while uncertainties in the global market weighed down on the prices of finished products,” it added.
Going forward, Petron said, two major projects in the Port Dickson Refinery that would enable the company to produce cleaner Euro 5 grade diesel and freight cost savings are on track for completion this year.
“Our efforts to strengthen our position are on track and we remain focused on pursuing our long-term strategic goals. We also look forward to rolling out new products and initiatives,” it added.
The company is also confident of posting stronger results for FY20. – Feb 27, 2020, Bernama
