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AFX Asia (Focus): Shell Malaysia Q4 net profit record high, thanks to strong refining margins ( Posted 24 Feb 05


KUALA LUMPUR (AFX) - Shell Refining (FOM) Bhd said it posted a record high fourth quarter to December net profit of 187.76 mln rgt, thanks to a combination of continued strong refining margins and an excellent operational performance.


The 2003 fourth-quarter net profit was 58.95 mln rgt.


In the notes accompanying the results, Shell said the profits, included an after-tax stockholding loss of 48 mln rgt partially offset by an 11 mln accounting adjustment relating to the capitalization of certain costs previously expensed.


It said 2004 net profit amounted 670.34 mln rgt, representing an increase of 488 mln, when compared to the 182.28 mln recorded in 2003.


"Overall in 2004, the company benefited from an after-tax stockholding gain of 80 mln rgt due to the overall increase in oil prices in 2004," it said, adding that this stockholding effect accounted for 12 pct of the companyıs total 2004 net profit.


Shell said the refinery processed 10.55 mln barrels of crude oil and feedstock and sold 10.88 mln barrels of products in the fourth quarter.


"The companyıs continued strong focus on safety has allowed it to sustain zero Lost Time Injury (LTI) up to end-Dec 2004, resulting in 3.58 mln man-hours without any LTI since May 22, 2001," it said.


On its outlook, Shell said strong refining margins are expected to hold in the first quarter and that the company will continue its efforts to achieve operational excellence.


"It is expected that the first strong refining margin situation will continue to hold in the coming quarter. However, any weakening in oil prices may have a negative impact on the companyıs financial results, given the stock valuation accounting practice adopted by the company," it said.


(1 usd = 3.8 rgt)

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