Published December 13, 2008

SPC warns of weak 2008 earnings

Email this article
Print article
Feedback

SINGAPORE Petroleum Company (SPC) warned yesterday that its 2008 earnings have been severely weakened by the steep falls in crude and product prices.

The regional oil and gas company, which said this in a performance guidance for 2008, added: 'The drastic slowdown in refined products demand in the second half of 2008 has caused a sharp drop in refining margins which has impacted the group's performance.' SPC plans to release its full year 2008 results on Jan 20.

The dent on SPC's earnings was already seen in its recent third-quarter results which showed net profit plunging to $619,000 from the previous corresponding period's $98.12 million as the company suffered from volatile oil prices.

The sudden global economic downturn that started kicking in during the quarter saw demand plummet. SPC had to take a $125.3 million write-down on its books for the third quarter as it was forced to mark down its inventory.

SPC shares closed five cents higher at $2.23 yesterday.