KUALA LUMPUR (Aug 29): Petron Malaysia Refining & Marketing Bhd has posted a 1.6% rise in net profit to RM92.4 million or 34.2 sen per share in the second quarter ended June 30, 2018 from RM91 million or 33.7 sen per share in the corresponding quarter a year ago on the back of higher revenues and gross margins.
Although the company's gross profit improved 27% to RM158 million, its net income only edged up slightly as it had recorded a one-time gain following the government's acquisition of its service stations in 2QFY17.
Revenue grew 29% to RM3.13 billion from RM2.42 billion in 2QFY17, largely due to higher oil prices and sustained growth in sales volume.
"Total sales volume for the period reached 9.1 million barrels, a 7% increase from 8.5 million barrels last year," it said in a bourse filing.
For the first half, the group reported a decline of 17.5% in net profit to RM164.5 million or 60.9 sen per share from RM199.5 million or 73.9 sen per share in 1HFY17, mainly due to lower refining margins as the price differentials between Brent crude and finished products narrowed during the period.
This was despite a revenue growth of 17.7% to RM5.85 billion compared to RM4.97 billion in the same period a year ago. Sales volume increased by 6% to 17.8 million barrels.
"We continue to see strong demand and preference for Petron's premium products and services underscored by higher sales volumes. We are focused on expanding our presence and thrive in this highly competitive market through elevating service excellence and offering more innovative products," Petron's chairman Ramon S. Ang said in a press release.
Petron said oil prices have lost momentum towards the end of the second quarter following more stable global supply with slowing demand. However, it observed that the persistent geopolitical situation has affected the oil market and that uncertainties continue to cause oil price volatility.
"The company will continue to mitigate exposures to price risks through our risk management system," it said.
As of closing, Petron's share price was down by 0.5% or 4 sen to RM8.02 for a market capitalisation of RM2.17 billion.