18 May 2005, Kuala Lumpur Shell Refining Company (Federation Of Malaya) Berhad (“Shell Refining”) today announced a record quarterly after-tax net income of RM 195 Million for 1st quarter 2005, an increase of 60% compared to the net income after tax of RM 122 Million recorded in the same quarter last year. The Company benefited from an after-tax stockholding gain of RM 138 Million due to the overall increase in crude oil and product prices experienced during the first quarter of 2005. Shell Refining Chairman, Datuk Jon Chadwick said: “Financial results are again pleasing. For the fifth consecutive quarter we have delivered a record level of profitability. This is due to sustained excellent operational performance, healthy refining margins and stockholding gains - our staff have done well”. In view of the exceptional first quarter financial results, Shell Refining's Board of Directors declared a special interim dividend of 10 sen per share. Chadwick stressed this is a “one off special”, directly linked to the Company’s strong cash generation and performance in the first quarter of 2005. The refinery processed 9.8 million barrels of crude oil and feedstock and sold 11.2 million barrels of products during the quarter (cf. 9.2 million barrels of crude oil and feedstock processed, 9.9 million barrels of products sold in first quarter 2004). The Company recorded another milestone by achieving zero Lost Time Injuries for the quarter, resulting in 3.72 million man-hours or almost four years without a Lost Time Injury. Chadwick further added: “The Company will continue pursuing operational excellence, proactive margin improvement and cost effectiveness - we are not standing still”. Regarding current year prospects, it is expected that the current healthy refining margin situation will continue to hold in the coming quarter. However, any weakening in oil prices may have a negative impact on the Company’s financial results, given the Company's stock accounting practices." Issued by Shell Malaysia on behalf of Shell Refining Company (FOM) Berhad. Lina Yap-Abdullah
Senior Advisor, Media & Communications
Corporate Affairs, Shell Malaysia
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