KUALA LUMPUR (Feb 22): Petron Malaysia Refining & Marketing Bhd’s net profit fell 11.6% to RM99.6 million in the fourth quarter ended Dec 31, 2017 (4QFY17), from RM112.6 million a year ago.

As a result, earnings per share came in lower at 36.9 sen, compared with 41.7 sen a year earlier.

This was despite revenue rising 23.6% to RM2.83 billion, from RM2.29 billion in 4QFY16, largely due to higher oil prices and growth in sales volume.

It also declared a final dividend of 25 sen per share, amounting to RM67.5 million for the financial year ended Dec 31, 2017 (FY17), subject to shareholders’ approval at the forthcoming annual general meeting.

In a filing with Bursa Malaysia, Petron said total sales volume reached 9.1 million barrels in 4QFY17, a 10% increase from 8.3 million barrels a year earlier. 

For the full FY17, Petron’s net profit surged by 70.6% to RM405.2 million, from RM237.6 million the previous year.

“The robust financial performance was supported by stronger oil prices and sales volumes which pushed revenues to RM10.4 billion, 36% better than last year,” the filing added. 

In a separate statement, Petron said net income seen in FY17 was the highest since the entry of Petron, which included a non-recurring gain amounting to RM65.6 million from compulsory divestment of service stations that were acquired by the government.

During the quarter under review, Brent averaged at about US$61 per barrel, compared with US$49 per barrel in the same period in 2016. Brent crude reached an average of US$64 per barrel in December last year, up by almost US$8 or 14% from September 2017 average level, compared with the range-bound movement during the same period in 2016.

“Our strategies continue to result in substantial gains as reflected in our banner performance for 2017. We will continue to focus on growing our market presence, enhancing our value chain and ensuring excellence in service at every touch point,” its chairman Ramon S. Ang said.

On the group’s outlook, Petron will tap on expected market growth through retail and commercial network upgrade and expansion programmes. It will also pursue several projects at the refinery to continue to produce and deliver quality and environment-friendly products.

Petron’s share price closed up 1.5% or 18 sen to RM12 today, with 418,400 shares traded, giving it a market capitalisation of RM3.2 billion.