This article first appeared in The Edge Financial Daily, on December 1, 2015.

Petron Msia Refining & MKTG Bhd (-ve)

Petron (Fundamental: 0.5/3, Valuation: 0.3/3) triggered our momentum algorithm for the third time in November. The stock jumped 8% to close at a one-year high of RM3.63 yesterday, on heavy volume. This came after the company announced its 3Q2015 results.

Petron returned to the black in 3Q2015 with a net profit of RM74.2 million, compared to a net loss of RM8.7 million in the corresponding period a year ago. This was despite a 17.5% y-y drop in revenue to RM2.2 billion. The improved performance was attributed to better operating efficiencies, stable margins and higher sales volume. Notably, net gains from foreign exchange and commodity derivatives totalled RM74 million.

Petron manufactures and sells petroleum products such as gasoline, diesel, liquefied petroleum gas, and industrial and commercial fuels. Its products are manufactured at the Petron Port Dickson Refinery, which has a capacity of 88,000 barrels per day.