KUALA LUMPUR (Aug 22): Petron Malaysia Refining & Marketing Bhd reported a drop in net profit for the fourth straight quarter, as bottomline was hurt by lower gross profit and unrealised commodity losses.

In its second quarter ended June 30, 2019, Petron's net profit slumped 39% to RM56.22 million from RM92.42 million a year ago, while revenue retreated 3% to RM3.02 billion from RM3.13 billion previously amid lower oil prices, despite having secured slightly higher sales volume.

"While dated Brent crude has recovered from the sharp decline in prices during the last two months of 2018, global oil prices remained volatile during the quarter with dated Brent averaging US$69 per barrel or 7% lower than the same quarter last year.

"Price differentials between finished products and crude remained narrow, resulting in a lower gross profit of RM134 million or 15% lower than RM158 million last year," Petron said in a filing with Bursa Malaysia.

The weaker 2QFY19 dragged its net profit for the first half of FY19 (1HFY19) down 30.88% to RM113.74 million from RM164.55 million in the year-ago period. Revenue fell 1% to RM5.77 billion versus RM5.85 billion previously.

Meanwhile, as oil prices continued to be volatile in the second quarter, Petron said it remains cautious as it sees more uncertainties in oil prices during the year amid the re-escalation of US-China trade war and ongoing geopolitical tensions. Nevertheless, the group noted that economic outlook remains positive in Malaysia.

In a separate statement, Petron's chairman Ramon S. Ang said the group still managed to deliver modest results, thanks to continued sales growth, despite thinning refining margins.

"We remain committed to pursuing strategic programs aimed at strengthening our brand, increasing our presence, and providing excellent products and services to our customers," said Ang.

He added that the group's Port Dickson refinery is set to complete its new diesel hydrotreater to comply with the government's requirement to supply Euro 5 diesel as well as a new import facility with two new product tanks in 2020.

Petron's share price fell 0.89% or five sen to close at RM5.58 today, for a market capitalisation of RM1.51 billion. Over the past one year, the counter has retreated some 31.03% from RM8.09.