KUALA LUMPUR (Aug 25): Petron Malaysia Refining & Marketing Bhd’s net profit rocketed to all-time high of RM183.48 million for the second quarter ended June 30, 2022 (2QFY22), more than four times of RM42.01 million achieved a year ago. 

The oil refiner said the sustained hike in prices resulted in strong regional refinery cracks, improvement of overall margins and lifting of operating income to RM362.32 million, more than five-fold from last year's RM66.51 million. 

On the back of this, its quarterly earnings per share ballooned to 68 sen from 15.60 sen, according to the bourse filing. However, the group did not declare a dividend for the quarter under review, despite the strong set of earnings.

Petron, however, pointed out that its earnings were affected by mark-to-market loss provision on outstanding commodity hedges. 

Quarterly revenue more than doubled to RM5.6 billion from RM2.03 billion, due to strong crude oil prices.

For the cumulative six-month period (1HFY22), Petron said its net profit expanded to RM289.86 million from RM145.01 million last year, as revenue spiked 133% to RM9.4 billion as compared to RM4.03 billion.

The solid earnings for the cumulative period were on the back of a higher sales volume ― 16.4 million bbls as compared to 13.1 million bbls ― coupled with the higher oil prices.

Looking forward, Petron said while the waning impact of the pandemic aided global demand for oil to recover, it noted that 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 by the rising global inflation and lockdown-related demand disruptions can further amplify the uncertainties,” it added.

On the domestic front, the oil refiner said while the economy is on a rebound as business operations in all sectors normalise, economic growth may be tempered if inflationary pressures are not contained, combined with the risk of a potential global recession, supply chain disruptions and financial market volatility.

Towards withstanding these potential headwinds, Petron said it 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.

Petron’s share price gained 24 sen or 4.32% to close at RM5.80 on Thursday (Aug 25), giving it a market capitalisation of RM1.57 billion. The stock has climbed 32% year to date.