SPC’s net profit drops; Keppel sells stake to PetroChina

Singapore Petroleum Co. (SPC) reported that its net profit for the first quarter declined by 43.5% during the same period a year ago, from SG$98.5 million (US$66.87 million) to SG$55.6 million (US$37.75 million). Revenue fell 46.8% to SG$1.4 billion (US$950.57 million) from SG$2.7 billion (US$1.83 billion) a year ago, due to lower demand for refined petroleum products. Refining margin in the first quarter was about US$4.50 per barrel, compared with the average refining margin of US$7 per barrel a year ago. The company said demand for petroleum products is likely to remain weak in 2009. “To cope with the downturn, the group has instituted stringent controls over operating, as well as capital expenditures, and will continue to optimize refining operations,” it said. In May, SPC parent Keppel Corp. Ltd. sold a 45.5% stake in SPC to a subsidiary of PetroChina Co. Ltd. for SG$1.47 billion (US$998.1 million). PetroChina paid SG$6.26 (US$4.25) for each SPC share, representing a 24% premium over SPC’s latest traded share price. (April 20, 2009)