KUALA LUMPUR (Aug 20): Petron Malaysia Refining & Marketing Bhd (KL:PETRONM) made a net profit of RM41 million for the second quarter of 2025, more than triple the RM13 million it made in the same quarter a year ago, thanks to the group's continued optimisation of its Port Dickson refinery.
This led to improved plant utilisation and increased production of higher-value refined products, which significantly countered the impact of oil price volatility and inventory holding costs during the period, the group said in a statement on Wednesday.
The improved earnings came despite oil price averaging 20% lower at US$68 per barrel during the quarter under review that ended June 30, 2025 (2QFY2025), compared with US$85 in 2QFY2024, which pulled the group's revenue down 24% to RM3.26 billion from RM4.29 billion.
Nevertheless, operating income more than doubled to RM52 million, the group said, which underscored its focus on operational efficiencies and effective resource management.
For the first half of FY2025 (1HFY2025), the group recorded a net profit of RM121.54 million, up 46.5% from RM82.95 million in 1HFY2024, with operating income improving by 9% to RM167 million, despite revenue dropping 22.5% to RM6.93 billion from RM8.94 billion.
Petron Malaysia attributed the improved half-year earnings to is focused efforts to reduce financing costs and commodity price exposures through effective risk management strategies.
"Amid ongoing market volatility, our capabilities to enhance operational efficiencies, manage resources effectively, and mitigate business risks remain crucial in sustaining our strong performance. We remain committed to strengthening our operations, expanding our market reach, and delivering long-term value to our stakeholders, while advancing our sustainability goals. Notably, we have streamed 15 new service station under the Petron Malaysia group,” said chairman Ramon S Ang.
The company is also "halfway through" the construction of its second palm methyl ester (PME) biodiesel plant, which is aimed at boosting its capability to produce biodiesel blended with sustainable PME. The project was first revealed in August 2023.
Petron Malaysia's share price closed unchanged at RM3.60 on Wednesday, valuing the group at RM972 million. The stock has retreated over 15% year-to-date.