KUALA LUMPUR – Petron Malaysia Refining & Marketing Bhd’s (PMRMB) quarterly net income in the second quarter of 2022 reached a record high of RM183.5 million, far exceeding last year’s RM42 million as the industry continued to recover from the impacts of the pandemic.
The Company’s total sales volume grew by 38% to 8.7 million barrels for the quarter as Malaysia transitioned to the endemic phase boosting mobility and economic activities throughout the country. Domestic sales significantly improved with Petron’s retail business already surpassing its pre-pandemic volumes.
The benchmark Dated Brent crude averaged US$114 per barrel in the second quarter compared to US$69 per barrel in the same period in 2021, mainly driven by supply risk concerns from ongoing geopolitical conflicts amid recovering global demand. Prices of finished petroleum products also surged during the period resulting in historic high regional refining cracks.
As both oil prices and sales volume improved, revenues soared to RM5.6 billion, more than double from last year’s RM2 billion. The strong sales performance translated to an operating income of RM362 million, more than five-fold from last year’s RM66 million. However, the higher financing cost and temporary provision for commodity valuation moderated the Company’s net profit to RM183.5 million. For the first half of the year, PMRMB managed a cumulative net profit of RM290 million, doubling the RM145 million generated last year.
“We are pleased to deliver another robust performance as we experience the waning effects of the pandemic. While the industry remains volatile, we will continue to intensify our risk management efforts and carefully manage our resources. This, as we continue to expand our reach and align our business operations with practices and projects that support a sustainable tomorrow,” said PMRMB Chairman Ramon S. Ang.
Petron is committed to providing high quality products while minimizing its environmental impacts. The Company supports the transition towards cleaner and lower-carbon fuel. It recently upgraded its facilities to enable production of cleaner Euro 5 diesel fuel and expanded its plant in Lumut, Perak, to accommodate higher production of Palm Methyl Ester to produce more biodiesel. The Lumut facility which is a Malaysian Sustainability Palm Oil (MSPO)-certified plant is a recipient in the Renewable Energy (biofuel) category in the National Energy Award 2021 by Malaysia Green Technology & Climate Change Centre (MGTC).