23 November 2006, Kuala Lumpur
Shell Refining Company (Federation of Malaya) Berhad ("Shell Refining" or the "Company") today announced an after-tax net income of RM 68 Million for the third quarter of 2006. Shell Refining Chairman, Saw Choo Boon, said: "Financial results remain satisfactory despite the decrease of 55% as compared to the net income after tax of RM 150 Million recorded in the same quarter last year. This was mainly due to the stockholding loss incurred in the third quarter of 2006 from declining oil prices.” In line with the Company’s dividend strategy announced on 28th November 2005, the Company has met its commitment to pay a quarterly special interim dividend for at least four (4) quarters. In light of current pressure on refining margins, the Board has resolved not to declare a special interim dividend for this quarter. In the third quarter of 2006, there was an after-tax stockholding loss of RM 72 Million as compared to the same quarter in 2005 where there was an after-tax stockholding gain of RM 79 Million. Compared to the second quarter of 2006, the Company’s third quarter net income after tax recorded a decrease of RM 49 Million or 54%. This was mainly from the impact of stockholding losses in Q3 2006. The refinery successfully processed 10.1 million barrels of crude oil and feedstock and sold 10 million barrels of products during the quarter due to world-class plant reliability and utilisation. The Company’s continued strong focus on safety has allowed it to sustain zero Lost Time Injury (LTI) up to 30th September 2006, resulting in 6.1 million man-hours without any LTI since 21 May 2001. Saw also stated that for the remainder of the year, refining margins are expected to be under pressure. He added that the Company’s financial results are primarily influenced by both refining margins and the movement in oil prices, given the stock accounting practice adopted by the Company. Note to Editors:
Shell Refining Company (Federation of Malaya) Berhad was formed in 1960 as a public listed company. It currently has 49% public participation and 51% held by Shell Overseas Holding Limited. The Company operates with state-of-the-art technology and is the key petroleum products supplier to Shell's downstream businesses in Malaysia. The oil refinery at Port Dickson has a licensed production capacity of 156,000 barrels per day and produces a comprehensive range of petroleum products, over 90% of which are consumed within Malaysia.
Media contact : Lina Yap-Abdullah, Shell Malaysia : Tel. 6 03- 2091 2252, Fax. 6 03- 2091 2990, H/P. 6 012- 3020 221, E-mail:   Lina.Yap-Abdullah@Shell.com
| 
