KUALA LUMPUR: Petron Malaysia Refining & Marketing Bhd
posted a net loss of RM25.5mil in the fourth quarter ended Dec 31, 2018 against a net profit RM99.56mil in the same quarter a year ago.
Petron said the prices of finished products fell as crude price dropped towards the end of 2018. The sharp decline in prices resulted in inventory holding losses that eventually led to a gross loss of RM13mil during the fourth quarter. This is a reversal of the RM160mil gross profit reported for the same period in 2017.
It said the significant contraction in gross profit resulted in a net loss for the quarter of RM26mil compared to net income of RM100mil in the same period last year.
Revenue in the fourth quarter rose to RM2.89bil against RM2.83bil.
For the full financial year ended Dec 31, 2018, Petron ended with total revenues of RM12bil, a 16% increase from the RM10.4bil posted in 2017, buoyed by higher international prices and steady growth in sales volume.
Total sales volume during the period reached 35.5 million barrels, up 2% 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, domestic sales particularly in the retail sector continued to grow during the period. Petron 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 its Petron Miles loyalty card program.
Its full year net income settled at RM225mil, 44% lower than the RM405mil in 2017. The decline can be traced to the fourth quarter’s net loss of RM26mil, a reversal of the RM100mil net income posted in the same period in 2017.
From an upward trend in July to October, Dated Brent dropped significantly in November and December. Petron incurred inventory holding losses towards the end of the year as prices plunged by almost 30% to US$57 per barrel in December from US$81 per barrel in October.
In 2017, the company also reported non-recurring gains amounting to RM65.6mil from compulsory divestment of service stations by the government.
“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,” chairman Ramon S. Ang said in a statement.
Petron continued to grow its number of stations in 2018 to over 640 stations together with its sister companies, Petron Fuel International Sdn Bhd and Petron Oil (M) Sdn Bhd.
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