KUALA LUMPUR: Shell Refining Co (Federation of Malaya) Bhd posted a net loss of RM199.8 million in the third quarter ended Sept 30, 2014, compared to a net profit of RM42.9 million in the previous corresponding period.

Revenue dropped 12.7% to RM3.44 billion from RM3.94 billion a year ago. It posted a loss per share of 66.59 sen against earnings per share of 14.29 sen in the previous corresponding period, its filing with Bursa Malaysia yesterday showed.

The company attributed the poor performance to stockholding losses of RM153.7 million.

The latest quarterly results caused the firm’s loss for the nine months to widen 129% to RM271.9 million from RM118.6 million a year earlier. Revenue for the period, however, rose 3.6% to RM11.33 billion from RM10.94 billion.

Shell Refining said the bigger loss was mainly contributed by stockholding losses of RM179.4 million due to a decline in oil prices. Comparatively, the company recorded a stockholding gain of RM46.5 million last year.

The increase in revenue for the nine months was mainly due to higher volumes sold this year.

The refinery processed 28.4 million barrels of crude oil, 1% lower compared with 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 maximise margin opportunities.

Its share price gained 23 sen or 4.1% to RM5.80, giving it a market capitalisation of RM1.74 billion.

This article first appeared in The Edge Financial Daily, on November 13, 2014.