KUALA LUMPUR, May 27 — Petron Malaysia Refining and Marketing Bhd has returned to the black with a net profit RM103.0 million for the first quarter ended March 31, 2021 (Q1 2021) compared with a net loss of RM83.68 million in the same quarter last year.
However, revenue for the quarter slipped to RM2.0 billion from RM2.24 billion previously.
In a filing with Bursa Malaysia, the company said the decline in revenue was due to lower sales volume following the imposition of the movement control order (MCO) 2.0 in key states to contain the Covid-19 pandemic.
“The company’s sales volume for the quarter decreased to 6.8 million barrels compared with 8.1 million barrels in Q1 2021 which was impacted by the two-week MCO 1.0 at the onset of the pandemic.
“The company saw a decline in revenue despite the higher Brent crude oil price which rose by 22 per cent and averaged at US$61 (RM252) per barrel in Q1 2021 compared with US$50 per barrel in the same period last year,” said Petron, which is engaged in the manufacturing and marketing of petroleum products in Peninsular Malaysia.
Notwithstanding the drop in revenue, the company said its profit turned positive as recovery in crude oil prices this year allowed it to realise inventory holding gains as opposed to losses it suffered from plunging prices last year.
Moving forward, Petron said while oil prices showed sustained recovery during Q1 2021, a certain level of volatility is expected in the global oil market to persist due to rising Covid-19 infections despite the rollout of vaccinations.
“Despite the ongoing challenges, the company remains on track for financial recovery and complete its major projects that are expected to yield immediate returns,” it added. — Bernama
