Petron says storm-hit jetty could affect financial performance


PETALING JAYA: Petron Malaysia Refining & Marketing Bhd has cautioned that a continuing force majeure event at its Port Dickson refinery is expected to have an adverse financial impact, following damage to its product jetty caused by Cyclone Senyar.

The force majeure declaration stays in effect as the jetty, which facilitates the transfer of refined products between the refinery and tanker vessels, has been inoperable since its partial collapse during the storm.

In a filing with Bursa Malaysia, the company said seabed debris clearing works are ongoing, with costs for this phase alone estimated at approximately RM18mil.

Progress has been constrained by unfavourable weather conditions, contributing to delays in restoration efforts. The damage occurred after the tropical storm affected the west coast of Peninsular Malaysia in November last year, bringing strong winds and flooding to several areas, including the Klang Valley.

At the same time, Petron is in the process of inviting bids from engineering contractors for the construction of a replacement jetty at the same location once clearing works are completed.

The company noted that rebuilding must be carried out on the existing seabed plot due to the presence of subsea pipelines in the surrounding area.

Petron said the temporary refinery shutdown, interim supply arrangements, jetty replacement works and associated remediation costs are expected to weigh on its financial performance and capital expenditure for the 2026 financial year.

However, the company did not provide an estimate for the total cost required to fully restore operations at the refinery.

Despite the disruption, Petron confirmed that the supply of gasoline and diesel at its service stations, as well as liquefied petroleum gas deliveries to customers, has remained uninterrupted. On Tuesday, shares in Petron closed three sen higher at RM4.17.

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