KUALA LUMPUR: Petron Malaysia Refining & Marketing Bhd saw its net profit for the second quarter jump more than four-fold to RM183.48 million from RM42.01 million posted in the same quarter last year as demand for fuel recovered with the removal of restrictions on travel and business activities.
In a filing with Bursa Malaysia, it said the benchmark Dated Brent crude price continued to surge in the second quarter of 2022 averaging US$114 per barrel, a 65 per cent increase from the US$69/bbl average in the same period last year, mainly driven by supply risk concerns on geopolitical tensions in Europe as well as constrained production from OPEC+ committed output amid recovering global oil demand.
"As both oil prices and sales volume improved, the company's revenue rose to RM5.60 billion (for the quarter ended June 30, 2022), more than double last year's RM2.02 billion,” it said.
The sustained hike in prices resulted in strong regional refinery cracks, improving overall margins and
lifting operating income to RM362.32 million, more than five-fold from last year's RM66.50 million.
For the first half of 2022, Petron recorded a higher sales volume of 16.4 million barrels compared to 13.1 million barrels sold in the same period last year.
"Combined with higher oil prices, the company generated revenue of RM9.40 billion, more than twice last year's RM4.03 billion. The resulting net profit of RM289.86 million was doubled the RM145.01 million last year.”
On the outlook, Petron said while the waning impact of the pandemic helped global demand to recover, the oil market remains volatile due to ongoing supply risk concerns arising from geopolitical conflicts and narrow spare production capacity among major oil producing countries.
Meanwhile, the growing recession fears brought about by the rising global inflation and lockdown-related demand disruptions can further amplify the uncertainties.
"On the domestic front, the reopening of borders and scrapping of restrictions allowed normal
business operations on all sectors which resulted in an economic rebound.”
However, the growth may be tempered if inflationary pressure cannot be contained, combined with the risks of potential global recession, supply chain disruptions and financial market volatility.
"To withstand the challenging business environment, the company will continue to utilise its resources prudently and intensify its risk management measures while remaining committed to expanding its market reach. Petron will also stay committed to aligning its business operations and programmes with practices and initiatives that support a sustainable environment and economy,” it added. - Bernama