KUALA LUMPUR (May 19): Shares of Shell Refining Co (Federation of Malaya) Bhd rose in early trade today after the company returned to profitability after four financial years.

At 9.33am, Shell rose 2.45% or 12 sen to RM5.02 with 52,800 shares traded.

Shell, which was bleeding losses in the last four financial years — returned to the black in the first quarter ended March 31, 2015 (1QFY15), after it posted a net profit of RM84.23 million or 28.08 sen per share, from a net loss of RM44.08 million or 16.69 sen per share a year ago, thanks to improved refining margin.

 Revenue during the quarter, however, fell 38% to RM2.48 billion, from RM3.99 billion in 1QFY14, which the group blamed on lower product prices, its filing to Bursa Malaysia showed yesterday.

 During the quarter, Shell Refining said it processed 9.5 million barrels of crude oil — a marginal 1% dip from 1QFY14.

 As for its outlook, Shell Refining (fundamental: 0; valuation: 0) said the strong refining margin in 1QFY15 was positively influenced by the lag in product pricing adjusting to crude pricing levels, and delays in start-up and stabilisation of new refining capacity in the region.

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