KUALA LUMPUR: Petron Malaysia Refining & Marketing Bhd's net profit increased to RM108.73 million in the first quarter (1Q) ended March 31, 2023 from RM106.38 million in the year-ago period, driven by higher sales volume.

Revenue rose to RM3.82 billion from RM3.80 billion previously, the company said in a filing with Bursa Malaysia today.

Petron's total sales volume in 1Q of 8.3 million barrels was eight per cent higher than the 7.7 million barrels sold in the same period last year.

"At the back of stable demand post-pandemic, domestic sales improved by 13 per cent from a year ago," the company said.

It noted oil prices and demand were constrained by the heightened global recession fears from the banking crisis in the United States and Europe, partly tempered by positive sentiments on China's expected economic recovery post-pandemic.

On prospects, Petron said while there were attempts to balance the oil market with the Organisation of the Petroleum Exporting Countries and its allies (Opec+) announcing output cuts, it still expects market uncertainties to affect oil demand-supply balance that may cause persistent volatility during the year, although in a modest range compared to 2022.

"Petron remains vigilant in managing the possible implications of these market uncertainties to the company's business operations through its comprehensive risk management approach.

"We will also continue to improve our operational efficiencies, optimise resources and pursue better-yielding investments in retail network expansion. At the same time, we are committed to pursue initiatives that are geared towards a sustainable environment, society and economy," Petron added.