The Star Malaysia - StarBiz

Esso first-quarter net profit falls on lower margins

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KUALA LUMPUR: Esso Malaysia Bhd’s net profit for the first quarter ended March 31 declined 46.7% to RM82.6mil from RM154.88mil a year earlier. Its revenue, however, rose to RM2.8bil from RM2.6bil.

The company said the drop was primarily due to the decline in margins as higher costing crude oil and finished products impacted the cost of goods sold.

Esso said revenue rose owing to favourable average product prices and higher retail volumes.

It added that global economic trends would continue to influence the crude price environmen­t and industry outlook.

“Given the impact these will have on potential earnings, the company will continue to focus on sustaining efficient operations, cost-optimisati­on initiative­s, sustained product and services quality, as well as strengthen­ing its business position through the implementa­tion of strategic programmes,” it said.

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