Petron Malaysia continues to rise on strong earnings

KUALA LUMPUR : Petron Malaysia Refining and Marketing Bhd saw its shares rise for the fourth consecutive day on THursday, on the back of strong third quarter earnings.

The stock hit an intraday high of RM4.45  before paring some gains. 

At midday, it was up six sen to RM4.25. There were 1.40 million shares done at prices ranging from RM4.21 to RM4.45.

Petron Malaysia reported a net profit of RM74.16 mil from RM2.16 bil in revenue for 3Q15. In comparison, it saw a net loss of RM8.67 mil during the same period a year ago.

The company attributed to the strong quarter-on-quarter improvement in earnings to better operating efficiencies, stable margins and robust growth in sales volume.

Petron Malaysia owns the largest oil refining and marketing operations in the Philippines. It also markets and distributed petroleum products in Malaysia, where it owns a refinery in Port Dickson, Negri Sembilan.

Since Nov 27, when Petron announced its latest earnings to Bursa Malaysia, the stock has gained 26%  and continues to trade at a four-year high.

According to technical analyst K.M. Lee, Petron Malaysia’s price chart indicates more gains going forward due to the bullish moving average convergence/divergence histogram.

Resistance is expected at the RM4.40 mark while firm support can be expected at around RM3.70, says Lee.