KUALA LUMPUR: Shell Refining Co (Federation of Malaya) Bhd (Shell Malaysia) posted a wider net loss of RM134.07 million in its third quarter ended Sept 30, 2011 (3QFY11) compared with a net loss of RM19.46 million a year ago.
In a filing with Bursa Malaysia yesterday, Shell Malaysia attributed the higher quarterly losses to weak refining margins and lower production following the group’s statutory major turnaround completed in July.
Pre-tax loss in 3QFY11 was also significantly higher at RM200.06 million compared with a pre-tax loss of RM26.4 million a year ago despite revenue growth of 15.99% to RM3.069 billion.
For its total nine months ended Sept 30, Shell Malaysia posted a net loss of RM26 million against a net loss of RM7 million a year earlier. Revenue for the cumulative three quarters grew marginally by 0.65% to RM7.889 billion from RM7.838 billion a year ago.
Shell Malaysia noted that it expects its refining margins to improve in 4QFY11, driven by stronger motor gasoline demand.
“Operational and processing flexibility will continue to remain the refinery’s key focus area to maximise margin opportunities,” Shell Malaysia said.
Quarter-on-quarter, its net loss widened to RM134.07 million from RM27.71 million in 2QFY11.
Shell Malaysia also noted that the construction of its diesel processing unit — with a daily capacity of 6,000 tonnes — was progressing on schedule.
With the new processing unit, the oil company said it would be able to vary its feedstock options, increase diesel production and improve refining margins.
Shell Malaysia also said its refinery had processed 7.1 million barrels of crude oil and sold 8.5 million barrels of product in 3QFY11.
The stock yesterday closed down two sen to RM9.60 with 202,100 shares traded. Its net assets per share stood at RM6.51 as at Sept 30.
This article appeared in The Edge Financial Daily, November 2, 2011.
In a filing with Bursa Malaysia yesterday, Shell Malaysia attributed the higher quarterly losses to weak refining margins and lower production following the group’s statutory major turnaround completed in July.
Pre-tax loss in 3QFY11 was also significantly higher at RM200.06 million compared with a pre-tax loss of RM26.4 million a year ago despite revenue growth of 15.99% to RM3.069 billion.
For its total nine months ended Sept 30, Shell Malaysia posted a net loss of RM26 million against a net loss of RM7 million a year earlier. Revenue for the cumulative three quarters grew marginally by 0.65% to RM7.889 billion from RM7.838 billion a year ago.
Shell Malaysia noted that it expects its refining margins to improve in 4QFY11, driven by stronger motor gasoline demand.
“Operational and processing flexibility will continue to remain the refinery’s key focus area to maximise margin opportunities,” Shell Malaysia said.
Quarter-on-quarter, its net loss widened to RM134.07 million from RM27.71 million in 2QFY11.
Shell Malaysia also noted that the construction of its diesel processing unit — with a daily capacity of 6,000 tonnes — was progressing on schedule.
With the new processing unit, the oil company said it would be able to vary its feedstock options, increase diesel production and improve refining margins.
Shell Malaysia also said its refinery had processed 7.1 million barrels of crude oil and sold 8.5 million barrels of product in 3QFY11.
The stock yesterday closed down two sen to RM9.60 with 202,100 shares traded. Its net assets per share stood at RM6.51 as at Sept 30.
This article appeared in The Edge Financial Daily, November 2, 2011.
