Petron returns to the black with RM56.82m net profit

by **Cals** Thu 21 May 2015, 22:40

Petron returns to the black with RM56.82m net profit

KUALA LUMPUR (May 21): Petron Malaysia Refining & Marketing Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) has returned to the black with a net profit of RM56.82 million for the first quarter ended March 31, 2015 (1QFY15), on improved margins as crude oil price remained low.
It has been reporting quarterly losses since 2QFY13.
In a filing with Bursa Malaysia today, Petron posted a net profit of RM56.82 million or 21.05 sen earnings per share compared with a net loss of RM6.72 million or 2.49 sen loss per share a year earlier.
Revenue for 1QFY15 fell 37.5% at RM1.84 billion in 1QFY15 from RM2.94 billion in 1QFY14.
Petron (fundamental: 0.2; valuation 1.8) attributed the group’s improved financial performance to pro-active risk management, better operating efficiencies and improved margins.
It said while Dated Brent remained weak, averaging US$54 per barrel versus the US$108 per barrel average in the same period last year, the price differential between processed crudes and finished products improved.
“This resulted in a significant improvement in gross profit and operating income, which ultimately ended in a net income of RM57 million. This is a turnaround from the RM7 million loss during the same period in 2014,” it said.
Petron added that its sales volume remained nearly flat at 7.2 million barrels during the period as the strong growth in gasoline, liquefied petroleum gas and aviation fuel was offset by a decline in retail diesel and export sales.
Moving forward, the group said it will continue to pursue the completion of strategic projects that will further increase its market presence and boost operational efficiencies.
“The group will carry out projects that will further enhance its supply chain to better support its expanding network of retail stations and customer base.
“The group’s initiative to link the Port Dickson refinery via the multi-product pipeline to the Klang Valley Distribution Terminal is expected to be completed by the end of 2Q. This will allow the supply of multiple products from the refinery to the Klang Valley market more efficiently and in a safe, secure and cost effective manner,” it said.
Petron shares closed 2.26% or 6 sen lower at RM2.60 today, with a market capitalisation of RM702 million.
(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.)