KUALA LUMPUR: Petron Malaysia Refining & Marketing Bhd (PMRB) recorded total sales volume of 8.8 million barrels for the third quarter of 2019, slightly lower compared to 9.1 million barrels sold in the same quarter of 2018.
For the first nine months of 2019, the company posted higher sales volume, reaching 27.1 million barrels from 26.9 million barrels in the same period last year.
Domestic sales was slightly higher while exports were down due to reduced production at its refinery, which underwent scheduled maintenance in September.
PMRB chairman Ramon S Ang said despite the challenging market environment, the company will continue with ongoing strategic programs and initiatives to solidify its market position, expand business, and provide better value to Malaysian consumers.
"Delivering quality products and personalised services to our customers as well as tapping into new markets and underserved locations remain our top priority," he said in statement today.
The company noted that global oil prices continued to be volatile with Dated Brent declining to average US$62 per barrel in the third quarter of 2019, 10 per cent lower compared to the $69 per barrel average in the second quarter.
Dated Brent hit its lowest level during the year in August at US$59 per barrel, resulting in inventory holding loss during the third quarter.
Compared to last year, prices of petroleum products were generally lower as the US-China trade war continue to dampen global demand.
Product cracks also narrowed resulting in lower refining margins this year.
Despite the unfavorable external factors, the company’s net income for the quarter settled at RM34 million versus RM85 million for the same period last year.
The decline in net income was a result of lower refining margins and inventory losses partly offset by savings in operating expenses.
Meanwhile, the company continued with its strategic programs. PMRMB together with its sister companies (collectively known as the Petron Malaysia Group) has already opened 38 new stations to date this year.
Its refinery is on track to complete the new Diesel Hydrotreater to enable it to meet Euro 5 fuel standards and a new import facility with two new product tanks in 2020.