Shell Refining Company Posts Q2-2015 Profit After Tax Of RM406.4M
Improved profitability due to stockholding gains and stronger refining margins as a result of weak crude prices and short term product availability
PORT DICKSON, 11 August 2015
The Shell Refining Company (Federation of Malaya) Berhad ("the Company") today announced its financial results for the quarter ended 30 June 2015 ("Q2-2015").
The Company registered revenues of RM5.4 billion YTD Q2 2015 as compared to RM7.9 billion in YTD Q2 2014 and is 31% lower in 2015 due to lower product prices. On a year-on-year basis, the Company posted an after-tax profit of RM406.4 million in 2015, compared to after-tax loss of RM 72.1 million in 2014. This was influenced by higher refining margins in combination with stockholding gains of RM101 million as compared to a stockholding loss of RM26 million last year. The refinery processed 19.6 million barrels of crude oil, and sold 21.3 million barrels of products and this is increased by 3% as compared to YTD Q2 2014.
On a quarter-on-quarter basis, the Company posted 20% higher revenues in Q2-2015 of RM3.0 billion, compared to RM2.5 billion in previous quarter. The Company recorded an after-tax profit of RM322.2 million this quarter as compared to an after-tax profit of RM84.2 million in Q1-2015. This was influenced by higher refining margins in combination with stockholding gains in Q2 2015 of RM97 million compared to a gain of RM4 million in Q1 2015. In Q2 2015, refinery processed 10.1 million barrels and this is higher by 7% compared to previous quarter.
Commenting on the quarter's performance, Amir Bakar, Managing Director of the Shell Refining Company (Federation of Malaya) Berhad said, "The team at the Shell Refining Company has continued to focus on strong operational performance and product quality, which put us in a good position to capitalize on the current business environment. We will continue to focus on delivering this year's business goals as well as our Health, Safety, and Environment performance; especially with the upcoming major maintenance turnaround event."
In its filing to Bursa Malaysia, the Company stated that its improved profitability for the year was due to stronger refining margins and stockholding gains as a result of weak crude prices and short term product availability. The Company maintains that the outlook for refining margins is uncertain for the remaining months of 2015 as margins will be influenced by international supply and demand for petroleum products, as well as seasonal and cyclical factors.
A major maintenance turnaround event in compliance to local regulatory requirement is also planned to commence in mid-August and is anticipated to be completed in seven weeks. There will be no production during this period which will affect profitability. The structured review of long term options for your Company that was announced on 9th January 2015 remains in progress.
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Media Enquiries
Issued on behalf of Shell Refining Company, Malaysia. For further media enquiries, contact:
Mr. Leigh Wong, Head of Media Relations & Issues Management
Cell: +60 12 525 8029, Email: leigh.wong@shell.com
About Shell Refining Company
Shell Refining Company (Federation of Malaya) Berhad was formed in 1960 as a public listed company. It currently has 49% public participation and 51% held by Shell Overseas Holding Limited. The Company operates with state-of-the-art technology and is the key petroleum products supplier to Shell Downstream businesses in Malaysia. The oil refinery at Port Dickson has a licensed production capacity of 156,000 barrels per day and produces a comprehensive range of petroleum products, some 90% of which are consumed within Malaysia.