Petron Malaysia's Q2 earnings up nearly by half to RM91m

KUALA LUMPUR: Petron Malaysia Refining & Marketing Bhd's earnings rose 48% to RM91mil in the second quarter ended June 30, 2017 on the back of stronger rvenue due to the hincrease in average crude products.

It reported on Thursday earnings were higher than the RM61.53mil a year ago but slightly lower than the results of the first quarter. Earnings per share were 33.7 sen compared with 22.8 sen a year ago.

Petron's revenue rose at a slower pace of 31.7% to RM2.41bil from RM1.83bil largely due to the increase in average crude prices of 9% and improvement in product cracks.  

Sales volume reached 8.5 million barrels, a 9% improvement from the 7.8 million sold during the previous year. 

Dated Brent crude, which averaged US$49.8 per barrel in the second quarter, dropped from the first quarter average of US$53.80. 

“The negative impact on margins was partly cushioned by favorable price differential between finished products and crude.  The company also realised gains on service station divestments as a result of compulsory acquisition by the government,” it said.

In the first half, earnings jumped 156% to RM200mil from RM78.14mil in the previous corresponding period. Revenue rose to RM4.97bil from RM3.48bil.

On the outlook, Petron said global oil prices remain sensitive to market trends on supply and demand. Recent trends, it said, continue to reflect the volatile market conditions that could affect the company's financial performance.

It also said it would continue to pursue its initiatives to counter any possible adverse impact of market uncertainties. It added that it had stepping up its continuing programme on network upgrade and expansion.