Hot Stock Petron shares hit one-year high following better 3Q earnings

by **Cals** Tue 01 Dec 2015, 00:35

Hot Stock

[size=28]Petron shares hit one-year high following better 3Q earnings

By Gho Chee Yuan / theedgemarkets.com | November 30, 2015 : 4:11 PM MYT

KUALA LUMPUR (Nov 30): Shares in Petron Malaysia Refining & Marketing Bhd ([You must be registered and logged in to see this image.] Valuation: 0.30, Fundamental: 0.50) rose as much as 6.25% to hit its one-year high of RM3.57 sen today, after posting improved earnings in its third quarter ended Sept 30, 2015 (3QFY15) last Friday.

At 3.21pm, the stock was trading at its one-year high of RM3.57, after 951,700 shares changed hands, making it the fourth largest gainer across the bourse.

At RM3.57, it has a market capitalisation of RM958.5 million.

Petron was in the red since 2QFY14, but returned to profitability in 1QFY15, with a net profit of RM56.82 million or 21.05 sen.

Then in 3QFY15, it recorded a net profit of RM74.16 million or 27.47 sen per share, as compared to a net loss of RM8.66 million or 3.21 sen per share in 3QFY14, on better operating efficiencies, stable margins and robust growth in sales volume.

Revenue for 3QFY15 fell 17.6% at RM2.16 billion, from RM2.62 billion in 3QFY14, due to low oil prices. The impact was, however, partially offset as it saw a 5% growth in overall sales volumes over the period.

Going forward, the group said it will continue to invest in strategic projects to further enhance its logistical capabilities and market reach.

"To support this growth, PMRMB has made significant investments in its logistics and distribution facilities," it said.

This includes the completion of additional storage tanks at its 88,000 barrel-per-day Port Dicson Refinery (PDR), to reduce vessel delivery turnaround times and improve loading efficiency.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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