Petron opens 2024 with double-digit sales volume and revenue growth
The sales volume increase was supported by Petron’s continued network expansion program and higher production at the Port Dickson Refinery.
SHAH ALAM - Petron Malaysia Refining & Marketing Bhd (PMRMB) began 2024 positively, witnessing double-digit growth in its sales volume, propelled by the stronger performance of its key business segments.
The company’s sales volume for the first three months stood at 9.8 million barrels, representing an 18 per cent improvement from a year ago, driven by the sustained growth of its retail and commercial trades.
The sales volume increase was supported by Petron’s continued network expansion program and higher production at the Port Dickson Refinery.
PMRMB chairman Ramon S. Ang expressed his optimism and satisfaction, stating that the company is encouraged by their promising performance at the outset of 2024.
"Our solid business fundamentals and prudent risk management guide our strategies, ensuring effective retail network expansion and operational efficiency.
"With a focus on resource management, we are well-positioned to navigate industry challenges and achieve continued success,” he said.
In the first quarter, Petron recorded revenues of RM4.65 billion, marking a 22 per cent increase compared to the corresponding period last year.
This translated to a gross profit of RM179 million, marginally surpassing last year's figure, as the growth in sales volume was partially offset by reduced regional refining cracks.
International oil prices continued to be volatile due to geopolitical tensions in the Middle East and Eastern Europe. The benchmark Dated Brent crude oil price surged by 10 per cent in the first quarter, climbing from $78 per barrel in December 2023 to $85 per barrel by March this year, rebounding from a 17 per cent decline observed in the fourth quarter of the previous year.
As operating expenses dipped 6 per cent, the company generated an operating income of RM132 million, 6 per cent better than the RM125 million posted in the same period last year.
Meanwhile, marked-to-market valuation loss on commodity hedges was recognised this year versus last year’s gain, resulting in a net profit of RM70 million compared to RM109 million in 2023.
PMRMB is equally focused on its sustainability initiatives to reduce carbon footprint, minimise waste, and promote a circular economy. As part of its partnership with KLEAN Malaysia, Smart AI-driven reverse vending machines are now available at selected Petron service stations to encourage plastic recycling in local communities.
Additionally, PMRMB plans to expand its solar panel installations to 100 more service stations by 2025, building upon the existing 35 installations.