Financial Information

Condensed Statement of Comprehensive Income

Condensed Statement of Financial Position

Financial review for current quarter

The Company reported lower revenue for the current quarter (“Q2 2025”) and year-to-date (“YTD”) for the financial period ended 2025. The decline was primarily attributed to reduced product prices, further exacerbated by the weakening of US dollar against the Malaysian Ringgit (“MYR”). The overall sales volume achieved for YTD 2025 were below the levels recorded during the corresponding period in 2024, mainly due to the plant’s scheduled pitstop maintenance in December 2024, which was completed in mid-January 2025.

Crack prices across all major products were weaker in Q2 2025 and YTD 2025 compared to the same periods in 2024, contributing to the overall adverse performance for H1 2025. Nevertheless, despite lower average crack margins and unfavorable hedging effects underpinned by high volatility in oil price movements, gross margin for Q2 2025 improved relative to the corresponding quarter in 2024. This improvement was largely attributable to the enhanced plant efficiency and improved production yields.

Financial review for current quarter compared with immediate preceding quarter

The Company achieved higher revenue in Q2 2025 as compared to Q1 2025, driven by increased sales volume resulting from improved plant availability. This followed the successful completion of the planned pitstop maintenance exercise, which commenced in December 2024 and concluded in mid-January 2025.

Notwithstanding the weaker crack prices for Gasoil and Jet A1, and the impact of unfavorable stockholding positions amid heightened oil price volatility, the Company delivered improved results in Q2 2025. This performance was underpinned by increased sales volume and stronger crack prices for Mogas products.

Prospects

The global oil market outlook remains highly volatile, shaped by a confluence of persistent headwinds. Geopolitical tensions, and inflationary pressures further destabilise the delicate balance between crude oil supply and demand and compressed refining margins.

On the supply side, the market faces rising pressures from a significant increase in output by OPEC+, and U.S. shale production, which continues to complicate the global supply landscape and order.

Amidst these evolving and testing economic conditions, the Company will remain vigilant and continue to closely monitor market conditions, focusing on continuous operational efficiency, maintaining product quality, and implementing financial risk management strategies to capture opportunities and improve overall performance.