Shell Malaysia expects Q4 to improve despite wider net loss in Q3

In the third quarter that ended last September 30, Shell Refining Co. (Federation of Malaya) Bhd (Shell Malaysia) posted a net loss of RM134.07 million (US$42.2 million), compared with a net loss of RM19.46 million (US$6.1 million) last year. Shell said that the quarterly losses were the result of weak refining margins and lower production due to the group’s major turnaround that was completed in July. Shell Malaysia posted a net loss of RM26 million (US$8.1 million) for nine months till September 30, compared to a net loss of RM7 million (US$2.1 million) a year earlier. But revenue for three cumulative quarters grew by 0.66%, from RM7.838 billion (US$2.48 billion) a year ago to RM7.889 billion (US$2.47 billion). The company said that stronger motor gasoline demand is expected to improve margins in the fourth quarter. Operational and processing flexibility will continue to remain the refinery’s key focus area to maximize margin opportunities, Shell Malaysia said. (November 2, 2011)