KUALA LUMPUR (May 25): Petron Malaysia Refining & Marketing Bhd posted a flat net profit at RM108.73 million or earnings per share of 40.3 sen for the first quarter ended March 31, 2023 (1QFY2023) from RM106.38 million or 39.4 sen per share.

This was due to the fall in crude oil prices though stable demand helped to cushion the decline.

Quarterly revenue sustained at RM3.82 billion compared with RM3.8 billion a year before, buoyed by higher domestic sales volume.

It noted that the benchmark Brent crude dropped 20%, averaging US$81 per barrel in 1QFY2023 compared with US$101 per barrel in the same period in 2022.

“Oil prices and demand were constrained by the heightened global recession fears from the banking crisis in the US and Europe, partly tempered by the positive sentiment on China’s expected economic recovery post-pandemic,” Petron Malaysia said.

Nonetheless, the group said the regional refining cracks remained strong during the quarter despite the softening of commodity prices. The stable refining margins partly tempered the impact of the decline in prices and expensive freight and other cost of importation.

On its current year prospects, Petron Malaysia said while there were attempts to balance the oil market with OPEC and its allies (OPEC+) announcing output cuts, the company still expects market uncertainties to affect the oil demand supply balance that may cause persistent volatility during the year, although in a modest range compared with 2022.

Thus, Petron Malaysia said it remains vigilant in managing the possible implications of these market uncertainties to its business operations and will continue to improve its operational efficiencies, optimise resources and pursue better yielding investments in retail network expansion.

In a separate statement, Petron Malaysia chairman Ramon S Ang said despite volatility in the market, the growth and risk management mindset has allowed the group to adapt and even thrive amid this constantly changing business landscape.

“We will continue to leverage on our strengths and work on sustaining this positive momentum,” he added.

Shares in Petron Malaysia settled unchanged at RM4.50, giving the group a market capitalisation of RM1.22 billion.