Petron Q4 earnings up 45% on improved refining margins

In a statement, it said revenue in the fourth quarter was, however, lower at RM1.51bil, compared with RM2.91bil a year earlier

PETALING JAYA: Petron Malaysia Refining and Marketing Bhd’s net profit for its fourth quarter ended Dec 31,2020 rose 45% to RM42.02mil from RM28.97mil in the previous corresponding period, boosted by improved refining margins and net inventory gains from recovering oil prices in the final quarter of 2020.

In a statement, it said revenue in the fourth quarter was, however, lower at RM1.51bil, compared with RM2.91bil a year earlier.

“Petron’s sales volume in the fourth quarter of 2020 was, however, still lagging versus the same quarter in 2019 due to the implementation of another conditional movement control order, slowing down movement and economic activity.

“The company sold 6.8 million barrels during the said period against the 9.2 million barrels sold last year.”

Petron said the benchmark Brent crude price rallied to reach US$50 per barrel in December 2020 from its September average of US$41, as anticipation grew for the roll-out of effective Covid-19 vaccines.

“Petron continued to manage its costs, effectively reducing its operating expenses by 12% or RM8mil during the fourth quarter. Its full year savings reached RM31mil, equivalent to 11% operating expenditure savings.”

For its financial year ended Dec 31,2020, Petron reported a net loss of RM13.32mil, compared with RM177.13mil in the previous corresponding period, while revenue dropped to RM6.46bil, compared with RM11.46bil a year earlier.

Petron chairman Ramon S. Ang said in the statement the positive results in the last two quarters of 2020 helped reduce the company’s net loss for the year to RM13mil, significantly scaling down the debilitating impact of the movement control orders in the first half.

“Dealing with multiple pressures, including an unprecedented crisis, prompted us to revisit our plans and strategies in 2020. We are slowly recovering from the impact of Covid-19 and we are confident that we can bounce back from this temporary setback.

“Our commitment to fuel growth and recovery remains as strong as we stand with Malaysia in its rebuilding efforts.”

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