KUALA LUMPUR (Feb 17): Shell Refining Company (Federation of Malaysia) Bhd posted losses of RM99.49 million in the fourth quarter ended Dec 31, 2011 and RM125.74 million losses for the financial year 2011, impacted by weak refining margins.
For the 4QFY11, the net losses of RM99.49 million were a stark contrast to the net profit of RM114.66 million a year ago.
“The board explained that the loss was mainly due to weak refining margins and lower production resulting from the statutory turnaround. The weak refining margins were caused by a spike in crude prices as a result of the Japan energy crisis and Middle-east geopolitical turbulent events,” it said on Friday.
Shell Refining said its 4QFY11 revenue was 32.8% higher at RM3.369 billion compared with RM2.537 billion.
However, its cost of sales was RM3.415 billion versus RM2.371 billion a year ago. Loss per share was 33.16 sen compared with earnings per share of 38.22 sen.
It proposed a final dividend of 20 sen per share despite the losses compared with the 30 sen dividend a year ago.
In 4QFY11, the refinery processed 8.6 million barrels of crude oil and sold 9.2 million barrels of product.
It added the CONSTRUCTION [] of a 6,000 tonnes per day diesel processing unit was on schedule and allow it to vary its feedstock options, increase diesel production and improve refining margins.
On the outlook, it said refining margins were expected to be continuously under pressure in 1QFY12. It added its key focus areas were to optimise financial and operational performance, which included ensuring processing flexibility, high plant reliability and commissioning the diesel processing unit upon its anticipated completion in 4QFY12.
For FY11, its net loss was RM125.74 million compared with net profit of RM106.38 million a year ago.
It recorded revenue of RM11.212 billion, an increase of 8% from RM10.376 billion a year ago. However, its cost of sales in FY11 was RM11.310 billion versus RM10.222 billion in FY10.
For the 4QFY11, the net losses of RM99.49 million were a stark contrast to the net profit of RM114.66 million a year ago.
“The board explained that the loss was mainly due to weak refining margins and lower production resulting from the statutory turnaround. The weak refining margins were caused by a spike in crude prices as a result of the Japan energy crisis and Middle-east geopolitical turbulent events,” it said on Friday.
Shell Refining said its 4QFY11 revenue was 32.8% higher at RM3.369 billion compared with RM2.537 billion.
However, its cost of sales was RM3.415 billion versus RM2.371 billion a year ago. Loss per share was 33.16 sen compared with earnings per share of 38.22 sen.
It proposed a final dividend of 20 sen per share despite the losses compared with the 30 sen dividend a year ago.
In 4QFY11, the refinery processed 8.6 million barrels of crude oil and sold 9.2 million barrels of product.
It added the CONSTRUCTION [] of a 6,000 tonnes per day diesel processing unit was on schedule and allow it to vary its feedstock options, increase diesel production and improve refining margins.
On the outlook, it said refining margins were expected to be continuously under pressure in 1QFY12. It added its key focus areas were to optimise financial and operational performance, which included ensuring processing flexibility, high plant reliability and commissioning the diesel processing unit upon its anticipated completion in 4QFY12.
For FY11, its net loss was RM125.74 million compared with net profit of RM106.38 million a year ago.
It recorded revenue of RM11.212 billion, an increase of 8% from RM10.376 billion a year ago. However, its cost of sales in FY11 was RM11.310 billion versus RM10.222 billion in FY10.
