Dear MR. MANOJ DEVADASAN
General Counsel / Company Secretary / Manager-Human Resources/Compliance Office
Shahidah Aris
Senior Legal Advisor/Assistant Company Secretary

Follow up with my email: A crack Spread Refinery Play dated 31 Oct 2022 which yourself and IB Kenanga yet to respond. I would like to get some answers from Petron Malaysia Management on the Petron Malaysia Q3 financial result:

OSP of Malaysia Tapis blend per barrel
July: USD 119.59
Aug: USD 111.75
Sept: USD 102.58
Average July to Sept: USD (119.59 + 111.75 +102.58)/3 = USD 111.307

Q2 Financial result:
Revenue: RM 5,596,062,000
Cost of sales: RM 5,180,442,000
Sales volume: 8.7 million barrels
Average USD to MYR April to June: 4.35
Revenue per barrel: USD 5,596,062,000/(8,700,000 x4.35) = USD 147.868
Cost of sales per barrel: USD 5,180,442,000/(8,700,000x4.35) = USD 136.886

Q3 Dated Brent dropped by 11% to USD 101/barrel in Q3 from the USD 114/barrel in Q2
Q3 Financial result:
Revenue: RM 4,684,552,000
Cost of sales: RM 4,821,552,000
Sales volume: 8.6 million barrels
Average USD to MYR July to Sept: 4.50
Revenue per barrel: USD 4,684,552,000/(8,600,000 x4.50) = USD 121.048
Cost of sales per barrel: USD 4,821,552,000/(8,600,000x4.50) = USD 124.587

My questions
Question 1: Please explain why Q3 revenue per barrel is USD 121.048 a sharp drop of USD 26.820 from Q2 USD 147.868 when International price of fuels as reported by Petron Corp for Q2 and Q3 as below excluded the retail petrol stations fixed margin per barrel?
Q2 2022
Prices of Dubai crude USD (101.8X2- 95.6) = 108/barrel
Gasoline cracks USD (26.4X2-17.8) = 35. Price USD (108 + 35) = USD 143/barrel
Diesel cracks USD (36.6X2-21.6) = 51.6. Price USD (108 + 51.6) = USD 159.6/barrel
Kero-jet cracks USD (27.7X2-16.2) = 39.2. Price USD (108 + 39.2)=USD 147.2/barrel
Q3 2022
Prices of Dubai crude USD (101.2X3- 95.6-108) = USD 100.3/barrel
Gasoline cracks $ (22X3-17.8-35) = 13.2. Price USD (100.3 + 13.2) = USD 113.5/barrel
Diesel cracks $ (38.1X3-21.6-51.6) = 41.1. Price USD (100.3 + 41.1) = USD 141.4/barrel
Kero-jet cracks $(29.3X3-16.2-39.2) = 32.5. Price USD (100.3 + 32.5) = USD 132.8/barrel

Note: From CapitalA Q3 report: Jet fuel cost RM 943,803,000. Jet Fuel consumed 1,437,102 barrel.
Per barrel = RM (943,803,000/1,437,102) = RM 656.740 or USD (656.74/4.50) =USD 145.94/barrel
From HRC Q3 report: The rise in revenue for the current quarter (“3Q 2022”) was supported by a 51% surge in the market product prices at an average price of USD124 per barrel as compared to USD82 per barrel in the corresponding period in 2021.

Question 2: Please explain the cost of sales in Q3 USD 124.587/barrel when Dated Brent is USD 101/barrel in Q3 and OSP of Malaysia Tapis blend per barrel average Q3 is USD 111.307?

Question 3: How many barrels did Petron Malaysia PD refinery process in Q3?

Question 4: what is the PD refinery overall yield and yield of gasoline, diesel and kero-jet?

Question 5: Retail Petrol Stations sales volume, revenue and the PBT?

Question 6: Commercial sales volume, revenue and the PBT?
Note from Petronas Dagangan Berhad Q3 report Business Segment:
Retail current quarter
Revenue: RM 4,536,800,000
PBT: RM 119,900,000
Commercial current quarter
Revenue: RM 5,528,900,000
PBT: RM 268,000,000
 
Question 7: Any decision by Petron Malaysia Management to engage with IB Kenanga Analyst on quarterly financial and business briefing?

Thank you

Have a good day

Best Regards
Lee Soon Sheng