KUALA LUMPUR – Petron Malaysia Refining & Marketing Bhd (PMRMB) recorded sales volume of 9.2 million barrels in the fourth quarter of 2019, 6% higher than the 8.6 million barrels sold in the same quarter of 2018. For the full year 2019, the Company’s sales grew by 2% over the previous year, generating total sales of 36.3 million barrels.
Despite the increase in sales volume, revenues for 4Q2019 were flat at RM2.9 billion as prices of petroleum productsin the region were slightly lower compared to 4Q2018. While average Dated Brent for the quarter was lower by 7% at US$63 per barrel, refining margins narrowed compared to the same period in 2018. 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. Amidst these volatilities, the Company still posted a net income of RM29 million for the 4Q2019, a complete reversal of the RM26 million loss incurred in 4Q2018.
For full year 2019, the Company posted an operating income of RM265 million, 14% higher than 2018’s RM233 million. However, the required mark-to-market valuation of inventory led to unrealized losses, resulting to net income for the year dropping by 21% to RM177 million compared to 2018’s RM225 million.
Amidst the challenging business environment, the Company together with its sister companies, continued to pursue strategic programs to enhance its retail network, operational efficiency, and overall product offerings and customer service experience.
Petron Malaysia opened 57 new stations in 2019, bringing the group’s total to about 700 service stations. Petron LPG’s Gasul brand has also reached more households with the expansion of its distribution network and the introduction of self-pick-up points at more Petron stations for the convenience of its customers.
PMRMB’s two major projects in the Port Dickson Refinery (PDR), the Diesel Hydrotreater which will enable the Company to produce cleaner Euro 5 grade diesel, as well as the two new additional product tanks and jetty facilities, which will provide freight cost savings, are on track for completion in 2020.
“Given the favorable results of 2019, we are confident that 2020 will be another strong year for Petron Malaysia. 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,” Ramon S. Ang, Chairman of PMRMB said.