KUALA LUMPUR – Petron Malaysia Refining & Marketing Bhd (PMRMB) ended 2022 with revenues of RM18.4 billion, twice that of 2021. The Company’s sales volume rose 28% to 33.8 million barrels as domestic travel and business activities continued to recover in the endemic phase. Petron’s Retail business kept strong and even exceeded pre-pandemic volumes. Despite lower prices in the second half due to the oil market correction, the Company posted a net profit of RM301 million, 26% higher than 2021’s RM238 million.
In the fourth quarter, the company posted RM4.3 billion in revenues, 44% higher than the RM3 billion generated in the same period in 2021. Sales volumes increased 22%, reaching 8.8 million barrels in Q4 due to the return of tourism and election-related travels.
The fourth quarter saw a sustained decline in crude prices owing to global inflation concerns, recessionary market sentiments and constrained demand in China due to COVID-19-related lockdowns. From the US$101 average in the previous quarter, the benchmark Dated Brent crude declined to US$89 per barrel in the further quarter albeit still higher compared to its US$80 per barrel average for the same period in 2021.
The drop in prices in the fourth quarter affected the Company’s margins despite the healthy regional refining cracks during the period. Nevertheless, the Company managed to mitigate the impact of falling prices, minimizing its net loss to RM21 million in the fourth quarter on the back of improved sales, higher production volume and prudent risk management measures.
“Overall, 2022 was a challenging year with geopolitical conflicts affecting oil price volatility. Despite this, we’re encouraged by our steady volume recovery and strong financial performance to pursue our expansion programs while keeping an eye on our costs and impacts on the environment. Our resilience and solid business framework carried us through the past year and it is through the same that we will navigate the challenges ahead,” said PMRMB Chairman Ramon S. Ang.
The Company remains committed to future-proof its portfolio by embarking on various initiatives to reduce its carbon footprint while venturing into profitable investment opportunities.