Shell 2Q net loss narrows to RM27.7m

KUALA LUMPUR: Shell Refining Company (Federation of Malaya) Bhd posted net loss RM27.71 million in the second quarter ended June 30, 2011 compared to net loss RM46.78 million a year earlier, due to weak refining margins and lower production as a result of the major statutory turnaround.

It said on Wednesday, Aug 10 that revenue for the quarter fell to RM1.62 billion from RM2.71 billion a year earlier. Loss per share was 9.24 sen while net assets per share was RM7.12.

Shell declared a gross interim dividend of 20 sen per share.

For the six months ended June 30, Shell’s net profit surged to RM107.83 million from RM11.83 million on the back of revenue RM4.82 billion.

Reviewing its performance, Shell said that in the second quarter of 2011, the refinery processed 12.4 million barrels of crude oil and sold 13.4 million barrels of product.

On its prospects, Shell said refining margins were expected to be under pressure in Q3 2011 due to growing concerns over oil prices and crude oil availability.

“The company continues to take every opportunity to optimise margins.

“In 2011, the company has commenced CONSTRUCTION [] of the new 6,000 tonnes per day diesel processing unit in the refinery. The RM810 million investment will allow the company to vary feedstock options and improve refining margins,” it said.