First quarter net income was RM109 million in comparison to RM17million over the same period last year
2017 started strong for leading player Petron Malaysia Refining & Marketing Bhd. (PMRMB) with a first quarter net income of RM109 million. This was six times higher than last year’s RM17 million profit over the same period. Strong growth in domestic sales, better margins, and operating efficiency are notable factors that contributed to the company’s performance.
Driven by its Retail and Commercial businesses, PMRMB’s domestic volumes grew by 7%. Key elements that created growth was launch of its revolutionary fuels namely Blaze 100 Euro 4M and Turbo Diesel Euro 5, the Fuel Happy campaign and its aggressive network expansion. Increase in volumes of jet fuel, diesel and LPG led to boost in its commercial business.
Margins improved as fuel prices rallied. Gross profit went up to RM183 million versus RM76 million over the same period, as margin improved together with increased sales of higher-margin products. There was an increase in operating income which rose to RM137 million from RM32 million for the same period in 2016.
There was a slight improvement in PMRMB’s total sales volumes of 8.3 million barrels in the first quarter of 2017, from 8.2 million over the same period last year.
Revenues increased by 54% to RM2.6 billion, reflecting higher fuel prices and increased domestic sales.
“Petron’s strong performance is a direct result of our strategic programs that have helped build the brand, increased our market presence, and unleashed more benefits from our value chain. We are definitely on track to deliver an even better performance than last year,” said PMRMB Chairman Ramon S. Ang. PWKD09062017