Petron posts slightly lower 3Q net profit despite surge in revenue

KUALA LUMPUR (Nov 24): Petron Malaysia Refining & Marketing Bhd's third-quarter (3Q) net profit eased 2.51% to RM32.01 million, from RM32.93 million posted a year earlier, due to oil price correction.

This was despite revenue for the third quarter ended Sept 30, 2022 (3QFY2022) surging 114% to RM4.68 billion from RM2.19 billion on the back of higher sales volume.

Petron said the price of Dated Brent dropped by 11% to US$101 (RM454) per barrel in 3QFY2022 from US$114 in 2QFY2022.

"Fears of recession from global inflationary pressures and constrained demand in China due to Covid-19 measures weighed down international prices," the group said in a Bursa Malaysia filing.

Meanwhile, crude premium continued to be expensive countering the improvement in regional product cracks resulting in gross loans.

However, this was offset by non-operating income largely traced to mark-to-market commodity hedging gain, income tax benefits from reduced tax provision due to the financial impact of oil market correction and tax incentives from diesel hydrotreater project, said Petron.

For the cumulative nine months ended Sept 30, 2022, Petron's net profit was RM321.95 million, up 80.93% from RM177.94 million in the same period last year, contributed by a higher revenue of RM14.08 billion compared with RM6.22 billion previously, amid higher sales volume and elevated prices.

On prospects, Petron said it will continue to optimise its resources, further enhance its operational efficiencies, and forge synergies with business partners and industry peers to mitigate the challenging business environment.

It remains committed to its strategic programmes of retail and logistical expansion, while embarking on various initiatives for a sustainable environment, the group said.

Petron shares climbed 13 sen or 2.91% to RM4.59 on Thursday (Nov 24), valuing the group at RM1.24 billion. Some 142,400 shares changed hands.