KUALA LUMPUR (May 25): Petron Malaysia Refining & Marketing Bhd's first quarter ended March 31, 2017 (1QFY17) net profit leapt more than six times to RM108.5 million or 40.2 sen per share from RM16.6 million or 6.2 sen per share due to strong growth in domestic sales, better margins and operating efficiencies.

Revenue climbed 54.2% to RM2.56 billion in the quarter from RM1.66 billion a year ago as a result of higher oil prices and domestic sales, Petron said in a filing with Bursa Malaysia today.

Domestic sales volume grew by 7%, driven by its retail and commercial businesses while the company's commercial business was bolstered by the increase in volumes of jet fuel, diesel and liquefied petroleum gas.

Its total sales volume rose to 8.3 million barrels in 1QFY17 from 8.2 million last year, tempered by lower export sales while it produced less export products such as low sulphur waxy residue and naphtha.

In a separate statement, Petron chairman Ramon S. Ang said the group's performance is a direct result of its strategic programmes that helped to build the brand, increase market presence, and provide more benefit from its value chain.

"We are definitely on track to deliver an even better performance than last year," Ang added.

According to Petron, in the first three months of 2017, Brent continued to rise to an average of US$54 per barrel versus US$34 last year.

As oil prices rallied, margins also improved with increased sales of higher-margin products, giving it a gross profit of RM183 million from RM76 million in the same period last year.

Operating income for 1QFY17 rose to RM137 million from RM32 million a year ago, Petron said.

The company's strong 1QFY17 performance shows it is on track to deliver its plans and programmes that would continue to build its brand and increase market presence.

It added that it is picking up the pace on service station expansion and would continue to implement cost saving and efficient projects in the areas of crude and product supply sourcing, and logistic supports and facilities.

Petron slipped one sen or 0.11% to close at RM8.69, for a market capitalisation of RM2.3 billion.