Upgrade of capacity is always a good news, however one thing have to be considered carefully that is the funding of project. I personally think that this going to be a big investment. Few options Petronm have on funding :

1) Borrowing - this is likely as Petronm had trim down its borrowing for the last 2 yrs, currently total debts stand around $308 mils ($150 mils is short term credit facility) & with $174 mils cash on hand. Free Cash Flow for FY2016 is $306 mils, hence the company can easily obtain the loan they needed.

2) Right Issue - cannot rule out but unlikely, as Petron Corp currently holding 73.39% of PetronM hence if right issue is carry out, the holding company have to folk out quite a substantial amount.

3) Private Placement - Possible, but very likely the amount raise through P/P will not be sufficient for the upgrade, hence a combination of P/P + borrowing is possible. If the P/P is pick up by institution like EPF or prominent fund then it will be a plus point.

anyway a lot of thing still too early to tell until the full upgrade plan is disclose.

in the report indirectly indicated that Chairman of Petron Malaysia Ramon Ang is in KL at the moment, hence likely the Qtr results might be announce within this few days + the "Big Investment" announcement.

Keep the figures cross

Petronm to increase it refinery capacity to 150K B/D !

For Long term is good, however short term the cash flow might be affected hence dividend payout ratio will be affected

https://business.inquirer.net/229522/petron-expanding-refinery-capacity?from=groupmessage&isappinstalled=0

Personally I think it is good to have some consolidation, as last week itself already up 21+%, let it settle down first, next spike can be very explosive as there will be minimum resistance

The 2 call warrants seems like going to be a losses for the issued bank, so what they can do now is try to do some damages limitation

personally I guess RXX Investment Bank is doing damage control now.

Ha ha ha..... paperplane agree with u !!!

I found that the young people now a days don't like to read carefully, and like to jump into the conclusion ! What is the total Petron stations in Malaysia ??? Annual report write it out clearly there, but people won't border to go and read.

Petronm actually own 300+ petrol stations + refinery plant, the rest of 200+ petrol stations own by Petron Fuel International S/B, Petron Oil S/B & other individual authorise dealers. Simple as that

Those suffer the stock loss are the small franchise operators that operate at the rural area. their sales volume are rather low so the inventory turnaround time is not fast enough to caught up with the petrol price changes.

Whereas for Big operators like Petdag, Shell & Petronm, weekly pricing mechanism is good as their inventory turnaround is huge & inventory turnaround time are fast. This will help to minimizes the quantum fluctuations of the income.

Ha ha ha.... cheers

@ probability, I just sharing what I think is correct & useful info. Anyway thanks to sumato88 to make it more accurate and precious on the estimation.

Hopefully we are benefit from this useful information and make some good $$ out of it.

Cheers & have a nice weekend to all Petronm believers, believe me this is just the beginning of our journey, many more to come.

Good job

Ha ha ha.......

Funny !!

PFISB & POMSB business are petrol retail, their profit will not have a sudden surge unless they increase their petrol stations, hence 10% yearly already very good.

Whereas Petronm earning will be much volatile due to refinery margin, forex rate & oil price, hence with the healthy refinery margin + strong oil price (the average price stated on Petron Corp financial report as USD53) + stable exchange rate. Petronm is expected to have a decent earning

@ Alex, personally I think your assumption is not correct, as PFSB & POMSB business model are relatively stable (as their business nature is petrol retail) hence using % to divide will not be that accurate.

For 2016 1st Qtr PFSB & POMSB net profit is around $22+ mils, let say we assume them get 10% growth hence their estimate 2017 1st Q net profit will be around $25 mils. After consider that, Petronm estimate profit will be $105 mils

Just my 2 cents, I might be wrong

Active Market floating share is getting lesser & lesser, conservatively won't more the 15% of total shares. Sit tight, relax and enjoy the joy ride.

tonight Grandpine daily briefing to their VIP members cover Petronm again, the speaker stated that Petronm PE still relatively low and there is still room for upside. Of course the price movement is very much dependent on the coming quarterly results

EIA report show that oil inventory drop 5.2 mils barrels last week

This privatisation issue, personally I don't think they will do it cause Petron Corp/SM group is not only eyeing for Malaysia petrol retail market, in fact they have a lot of other business plan once Petronm set a good foothold.

Recently SM group just stated they intend to start a food business division at Malaysia & Petron 580 petrol stations will be a very good network for their business.

So it to keep Petronm as listed company will be good for their strategy plan in term of branding & exposure

Refinery margin, hedging oil price & forex rate are the 3 main factors that affect their profit margin

Petrol price won't affect their profit other than small amount of stock losses.

@ Alex, Thank you for the thought. Next time we have coffee, I buy u !! Ha ha ha

It is good that give away a small part of your winning as donations. Keep it up

Jay & sumato88 are the 2 persons we need to say thank you, they provided some very valuable information. This help a lot.

I m just sharing information only. Nothing much.

@ probability, no worry ! Just share some info only

Just a rough estimation

There will be 2 scenarios for the calculations of Petronm 1st Qtr estimated profit.

1.5 billions peso = RM130 millions

1st Scenario (RM130 mils is calculated 100% of Petron Malaysia operation + other subsidiaries) :

Estimated profit : $130 mils - $30mils (estimated profit portion by Petron Fuel International Sdn Bhd & Petron Oil Sdn Bhd) = around $100 mils

Which work out the EPS = around 37 cents

2nd Scenario (RM130 mils is calculated 73.39% of Petron Malaysia operation + other subsidiaries) :

Estimated profit : $177.7mils - $30mils (estimated profit portion by Petron Fuel International Sdn Bhd & Petron Oil Sdn Bhd) = around $147.7 mils

Which work out the EPS = around 54 cents

However the $1.5 billions peso account for Petron Corp is only 73.39% income of Petronm + non listed business. Hence maybe the estimation of RM130 mils is not very far off target.

Keep the figures cross

@ Jay, true they have unlisted business. So maybe $130 millions is a bit overrated.

Market leader Petron Corporation continued its strong momentum in the first three months of 2017 posting a consolidated net income of P5.6 billion – the highest quarterly income in the company’s history – double the previous year’s first quarter earnings of P2.8 billion. Net income from Philippine operations grew 69% to P4.1 billion and accounts for 74% of consolidated figures while income from Malaysian operations surged 335% to P1.5 billion.
Petron’s exceptional performance in both markets is mainly due to its strong focus on more profitable segments, production of higher-margin fuels and petrochemicals, and aggressive market expansion.
In the Philippine retail segment, Petron’s volumes grew by another 6% while its LPG and Lubricants businesses grew by 5% and 16%, respectively. Currently, Petron has the highest network count with about 2,300 service stations – more than its next three competitors combined – which retail its cutting edge fuels and serves as outlets for its other products and services.
Petrochemical export volumes more than doubled over the period allowing Petron to capture better margins from benzene, toluene, mixed xylene, and propylene. Meanwhile, exports of fuels were lessened as more volumes were sold locally as part of the company’s strategy to optimize margins.
The company’s Malaysian operations also experienced steady growth with domestic volumes growing by another 6%, fueled by double-digit growth from the Commercial and Lubricants sectors.

Overall, Petron’s consolidated sales volumes grew to 26.2 million barrels, on track for another record-breaking year. First quarter 2017 volumes translated to revenues of P106.4 billion, 38% higher over the same period last year. Operating income improved by 54% to P8.9 billion.
“We are definitely setting our sights on an even better performance this year as we derive more benefits from our strategic investments. Demand for fuels remains strong coming from the transportation, aviation, and manufacturing sectors where we are well-entrenched and poised to grow,” Petron President and CEO Ramon S. Ang said.
Petron continues to be the leading innovator when it comes to fuels technology as it recently delivered the most advanced gasoline in country, the Blaze 100 Euro 6. The revolutionary fuel meets the most stringent technology and emission standards in the world (Euro 6b) and guarantees better performance, more mileage, cleaner engines, and lower maintenance costs.
“Since our fuels are locally-produced and formulated in our refinery, we can guarantee the quality and consistency of Petron fuels. We will continue to innovate and lead in fuels technology so we can put more savings in our customers’ pockets while improving air quality across the nation,” Mr. Ang concluded.

http://www.petron.com/web/Media/uploads/05_08_17_-_Media_Release_-_Petron_Posts_Record_Quarter,_Hits_P5.6_Billion_in_Net_Income_._._.pdf

@Jay, it is the press release and I guess the financial statement will only be uploaded by today evening.

Petron Corp just released it's 1st Qtr results with the net income of 5.6 billions peso (yoy surge 100%) ! In the report did mentioned that the Petronm contribution is 1.5 billions peso, which means that Petronm net income is estimated around RM130 mils.

Keep your figures crossed

Not out yet

Petron Corp is the holding company of Petron Malaysia !

@ Jay, I mean Petron Corp. last year they released the results at 5/5/2016

Petron Corp will release their first Qtr results either today or early next week, hopefully we can have more positive info from there.

Keep the figures cross

Oil price fluctuations is part of Petronm business, that is the calculated risk you need to if you are in O&G downstream business. As long as refinery margin stay in reasonable healthy zone then no big issue.

Then sel loh !! Ha ha ha

As long as China government continues to deny permission for their local teapot refinery to export gasoline & diesel to oversea market. Asia refinery margin should be able to stay at reasonably healthy zone.

https://www.bloombergquint.com/markets/2017/05/02/oil-traders-idled-as-china-refiner-stars-fall-foul-of-smog-fight

As far as Jet Fuel concern Petronm is still rather small in term of volumn supply to airline companies, however I m sure that Petronm management will be pushing hard for the growth

@Jay, in the annual report on commercial sector it did mentioned about the KLIA & KLIA2 which means that Petronm not only supply jet fuel to MAS only but they have started to supply to A.Asia as well.

BP just posted a decent Q1 results, where healthy refinery margin is reported during that quarter.

http://m.nasdaq.com/article/bp-plc-bp-beats-q1-earnings--revenue-estimates-cm782404

Phillips 66 just reported a reasonably good results, in the report did mentioned that improved refinery margin help lifted the bottom line.

Ha ha..... i will always drop by if I free !!

Petron Miles card is growing from 2 millions members last year to 4 millions members as at today.

This is something very encouraging, I m sure that this extra 2 millions new members will contribute some healthy growth for the business

Go through the annual report, there are some positive developments. FY 2017 could be a record year for Petron if the oil prices,refinery margin & exchange rate can sustain at reasonable level.

Although oil price has been slip down recently but refinery margin in the other hand has been quietly climbing up gradually. With the addition of RM strengthening, I guess Petronm will be benefited in a way.

However I m not predicting the short term share price movements for Petronm, as it is unpredictable

http://www.hellenicshippingnews.com/asia-fuel-oil-refining-margins-at-6-week-high-physical-premiums-edge-higher/?from=groupmessage&isappinstalled=0

Which investment bank covered Petronm ?? I can't recalled got any investment bank covered it.

I think they use FIFO i