KUALA LUMPUR (Nov 12): Shell Refining Company (Federation of Malaya) Bhd posted net loss of RM199.8 million in the third quarter ended Sept 30, 2014, compared with net profit of RM42.9 million in the previous corresponding quarter.
Revenue dropped 12.7% to RM3.44 billion, from RM3.94 billion a year ago. It posted loss per share of 66.59 sen, against earnings per share of 14.29 sen in the previous corresponding period.
The company attributed the poor performance to stockholding losses of RM153.7 million.
The firm’s loss for the nine-month period widened 129% to RM271.9 million, from RM118.6 million a year earlier; but revenue rose 3.6% to RM11.33 billion, from RM10.94 billion in the same period last year.
Shell Refining said the bigger loss was also mainly contributed by stockholding losses of RM179.4 million, due to the decline in oil prices. Comparatively, the company recorded a stockholding gain of RM46.5 million last year.
The increase in revenue for the nine-month period was mainly due to higher volumes sold this year.
The refinery processed 28.4 million barrels of crude oil, which is 1% lower as compared to last year.
On current year prospects, Shell Refining expects refinery margins to be weak for the rest of the year, but said it would continue to focus on operational and product quality to maximize margin opportunities.
Shell Refining's share price gained 23 sen or 4.1% to RM5.80, translating to a market capitalization of RM1.74 billion.