KUALA LUMPUR (Feb 23): Petron Malaysia Refining & Marketing Bhd (PMRMB) posted a net loss of RM21.37 million in the fourth quarter ended Dec 31,2022 from a net profit of RM60.53 million a year ago due to a decline in crude oil prices amid expensive importation costs.

In a statement on Thursday, the group said there was a sustained decline in crude prices to an average of US$89 per barrel during the quarter under review compared with US$114 and US101 per barrel in the second and third quarter respectively.

“From the US$101 average in the previous quarter, the benchmark Dated Brent crude declined to US$89 per barrel in the further quarter albeit still higher compared with its US$80 per barrel average for the same period in 2021,” it said, blaming global inflation concerns, recessionary market sentiments and constrained demand in China due to Covid-19-related lockdowns as factors for the price decline.

The group said the drop in prices in the fourth quarter affected margins despite the healthy regional refining cracks during the period, mitigated by improved sales, higher production volume and prudent risk management measures.

During the quarter under review, revenue rose 43.9% to RM4.27 billion from RM2.96 billion. Sales volumes increased 22%, reaching 8.8 million barrels during the quarter due to the return of tourism and election-related travel.

For the full year ended Dec 31, 2022 net profit increased by 26% to RM300.59 million from RM238.47million while revenue almost doubled to RM18.35 billion from RM9.18 billion

The company’s sales volume rose 28% to 33.8 million barrels as domestic travel and business activities continued to recover in the endemic phase.

“Overall, 2022 was a challenging year with geopolitical conflicts affecting oil price volatility. Despite this, we’re encouraged by our steady volume recovery and strong financial performance to pursue our expansion programs while keeping an eye on our costs and impact on the environment,” said PMRMB chairman Ramon S Ang.