Wednesday, August 4, 2010

Shell Refining in the red in 2Q on stockholding losses

KUALA LUMPUR: Shell Refining Company (Federation of Malaysia) Bhd posted losses of RM46.78 million in the second quarter ended June 30, 2010 compared with net profit of RM220.95 million a year due to stockholding losses on lower crude and product prices.

Shell Refining said on Wednesday, Aug 4 that revenue rose to RM2.708 billion from RM2.306 billion. Loss per share were 17.2 sen versus earnings per share of 73.44 sen. It declared dividend per share of 20 sen, which was the similar amount a year ago.

"This financial result is mainly attributed to stockholding losses with lower crude and product prices, although refining margins remain satisfactory. Stockholding losses after tax were recorded at RM32 million compared to stockholding gains of RM162 million in the corresponding period in 2009," it said.

Shell Refining also said the company 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.

The capacity of the refinery remains unchanged at 156,000 barrels per day.

Shell Refining successfully processed 8.9 million barrels of crude oil and sold 9.0 million barrels of products during the quarter.


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