Quarterly Report For The Financial Period Ended 31 December 2017
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Condensed Consolidated Statement Of Profit Or Loss And Other Comprehensive Income For The Fourth Quarter Ended 31 December 2017
Condensed Consolidated Statement Of Financial Position As At 31 December 2017
Financial review for current quarter and financial year
Revenues for the fourth quarter and financial year ended 31 December 2017 were higher as refined products traded 20% - 30% above the market prices seen in the respective corresponding periods last year. The Company also recorded a 5% increase in its annual sales volume as a result of improved plant reliability.
Gross profit and profit after taxation for the current financial year were largely influenced by exceptional refining margins experienced in the third quarter of 2017. This was attributed to unplanned production outages in the global market caused by hurricanes in the Gulf of Mexico region and a fire incident reported in a world-scale European refinery. Gross profit for the current quarter was marginally higher than the same period last year as a result of a 6% increase in sales volume. Gains on foreign currency exchange recognised in the current quarter resulting from the strengthening of RM against the USD were offset by the recognition of deferred tax liabilities, rendering a decrease in the current quarter’s profit after taxation.
Current Year Prospects
Refining margins are expected to remain volatile in the near term based on published forward market prices and refining margins. Operational efficiency, product quality, hydrocarbon and financial risk management continue to remain as key areas of focus in optimising the Company’s performance.