KUALA LUMPUR (Nov 19): Petron Malaysia Refining and Marketing Bhd’s net profit for the third quarter ended Sept 30, 2020 (3QFY20) soared 183.64% to RM97.64 million with earnings per share (EPS) of 36.2 sen, from RM34.42 million or 12.7 sen a year ago, thanks to cost rationalisation measures and higher gross profit.
However, it told the stock exchange that its revenue for 3QFY20 fell 39.24% to RM1.68 billion from RM2.77 billion, as the ongoing pandemic capped both fuel prices and demand this year.
“The company's continued cost rationalisation measures saved 11% on operating and administrative expenses against last year,” it said.
It added that Brent crude prices also recovered by 48% to an average of US$43 per barrel in the third quarter from this year, while gross profit improved by 54% to RM151.8 million from RM98.76 million a year ago.
However, for the nine months ended Sept 30, the group slipped into a net loss of RM55.33 million or loss per share of 20.5 sen from a net profit of RM148.16 million or EPS of 54.9 sen.
Its revenue dropped by 42.07% to RM4.95 billion, from RM8.54 billion.
On its prospects, Petron Malaysia said a significant build-up of inventory during the first half of the year, coupled with unpredictable demand from renewed lockdowns to curtail a resurgence of Covid-19 cases continues to threaten global oil markets.
"While the possibility of a Covid-19 vaccine becoming available soon is positive news for the international oil market and the global economy as a whole, the upcoming changes in US leadership may trigger a potential shift in geopolitical policy. Overall, these factors will continue to affect oil prices in the near term," it said.
Despite the continuing threats of the ongoing pandemic to the oil industry and the Malaysian economy, the company remains confident that through its prudent resources and risk management measures, business performance will improve along with the country’s economic recovery.
Petron Malaysia closed up 1 sen or 0.29% to RM3.46 today, valuing the group at RM934.2 million.