Results satisfactory as company continues to record good profits: Saw

KUALA LUMPUR: Shell Refining Co (Federation of Malaya) Bhd’s net profit for the first quarter (Q1) 2008 fell by RM14 million to RM123 million from RM137 million previously.

In a statement here yesterday, Shell said the fall was mainly due to lower refining margins and stockholding gain.

It said the stockholding gain for Q1 2008 was RM27 million compared with a gain of RM44 million in Q1 2007.

Its chairman Datuk Saw Choo Boon said the financial results were satisfactory as the company has continued to record good profits despite volatile refining margins.

“We will continue to aggressively pursue operational excellence and cost and margin improvement initiatives in order to maintain a strong underlying performance, regardless of market forces,” he said.

He said the refinery processed 9.7 million barrels of crude oil and sold 9.9 million barrels of products during the quarter.

On the firm’s outlook, Saw said refining margins were expected to be under pressure in the second quarter of 2008 due to high crude prices and prevailing market volatility.

“Any changes in oil prices will have an impact on the company’s financial results, given the stock accounting practice adopted by the company,” he said.

Its 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 per cent of which are consumed within Malaysia.

— Bernama