Petron’s FY19 net profit falls to RM177m

In a statement today, Petron said the company posted an operating income of RM265 million in the financial year 2019, up 14 per cent from RM233 million in 2018. — Foto from Facebook/Petron Corporation
In a statement today, Petron said the company posted an operating income of RM265 million in the financial year 2019, up 14 per cent from RM233 million in 2018. — Foto from Facebook/Petron Corporation

KUALA LUMPUR, Feb 27 — Petron Malaysia Refining and Marketing Bhd’s (Petron) net profit for the financial year ended December 31, 2019 (FY19), fell to RM177.1 million from RM224.5 million in the financial year 2018.

Revenue decreased to RM11.45 billion from RM12.04 billion previously.

In a statement today, Petron said the company posted an operating income of RM265 million in the financial year 2019, up 14 per cent from RM233 million in 2018.

“However, the required mark-to-market valuation of inventory led to unrealised losses, resulting to net income for the year dropping by 21 per cent to RM177.1 million compared to RM224.5 million in 2018,” it said adding that, the company’s sales in the FY19 grew by two per cent over the previous financial year.

It generated a total sales of 36.3 million barrels.

Petron said it opened 57 new stations during the financial year, bringing the company’s total stations to about 700.

It added that Petron’s liquefied petroleum gas under the Gasul brand has also reached more households with the expansion of its distribution network and the introduction of self-pickup points at more Petron stations for the convenience of its customers.

On the fourth quarter, Petron recorded a net profit of RM28.96 million from a net loss of RM25.54 million in the same quarter of the previous financial year.

Its revenue increased slightly to RM2.91 billion from RM2.89 billion previously.

Petron said it recorded a sales of 9.2 million barrels in the quarter, six per cent higher than the 8.6 million barrels sold in the same quarter of 2018.

However, it said revenue for the quarter almost flat due to slightly lower prices of petroleum products in the region during the period as compared to the fourth quarter of the preceding year.

“The heightened political tensions among oil-producing countries pushed up crude premiums while uncertainties in the global market weighed down on the prices of finished products,” it said.

Going forward, it said two major projects in the Port Dickson Refinery that would enabled the company to produce cleaner Euro 5 grade diesel and freight cost savings are on track for completion this year.

“Our efforts to strengthen our position are on track and we remained focused on pursuing our long-term strategic goals. We also look forward to rolling out new products and initiatives to further separate our brand,” it said.

The company is also confident to post a stronger result for the financial year 2020. — Bernama

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