Shell Refining Co (Federation of Malaya) Bhd posted a net loss of RM46.8mil in its second quarter ended June 30 against a net profit of RM220.9mil in the previous corresponding period due to stockholding losses.
“This financial result is mainly attributed to stockholding losses with lower crude and product prices, although refining margins remain satisfactory.
“Stockholding losses after tax for the period under review were recorded at RM32mil compared with stockholding gains of RM162mil a year earlier,” said the company in a statement accompanying its filing with Bursa Malaysia yesterday.
Stockholding is the feedstock of mainly crude oil stored for processing at refinery.
Meanwhile, Shell Refining revenue for the period under review increased to RM2.71bil from RM2.31bil last year.
Cumulatively, the company’s was still in the black with RM6.2mil net profit for the first six months of this year compared with RM325.8mil of net profit in the previous corresponding period.
Going forward, Shell Refining said it would build a new 6,000 tonnes per day diesel processing unit at its Port Dickson refinery.
“The new unit will allow the company to vary its feedstock options, increase diesel production and improve refining margins,” it said.
However, the capacity of the refinery remains unchanged at 156,000 barrels per day.
Shell Refining also declared an interim dividend of 20 sen per share of RM1 each, less 25% of Malaysian income tax for the financial year ending Dec 31, 2010, payable on Sept 30 to shareholders registered in either the record of depositors or the register of members at the close of business on Sept 8.
The company has processed 8.9 million barrels of crude oil and sold nine million barrels of products during the quarter.
It is also sustaining zero lost time injury (LTI), resulting in more than 11 million hours worked without LTI since May 21, 2001.
Shell Refining was formed in 1960 and it currently has 49% public participation and is 51% held by Shell Overseas Holding Ltd. - The Star
