PORT DICKSON, 17 Feb 2015 – The Shell Refining Company (Federation of Malaya) Berhad (“the Company”) today announced its financial results for the year ended 31 December 2014, registering a revenue of RM14.3 billion YTD Q4-2014, 3% lower than the same period in 2013. Additionally, the Company’s Board of Directors also announced that an impairment loss of RM461 million (“the Impairment Loss”) was assessed, representing a write-down of plant, property, and equipment to the recoverable amount, in accordance to the Malaysian Financial Reporting Standard 136: “Impairment of Assets”.

On a year-on-year basis, the Company posted an after-tax loss of RM1,188.7 million in 2014 compared to an after-tax loss of RM155.9 million in 2013. The higher losses in 2014 were mainly contributed by stockholding losses of RM625.1 million due to fall in oil prices (from average dated Brent marker of USD107/bbl in Jan 2014 to Dec 2014 of USD55/bbl), impairment losses of RM461 million, and operational losses of RM102.6million. In 2013, comparatively, the company recorded a stockholding gain of RM95.5 million, which resulted in operational losses of RM251.5million in 2013. The refinery processed 37.9 million barrels of crude oil, and this is higher by 1% as compared to 2013.

Quarter-on-quarter, the Company posted 15% lower revenue of RM2.9 billion in Q4 2014, compared to Q3 2014, due to decreasing product prices since early July. Its Q4-2014 after-tax loss of RM916.9 million this quarter was the result of stockholding losses of RM445.8 million (from average dated Brent marker of USD94/bbl in Oct 2014 to Dec 2014 of USD55/bbl), impairment loss of RM461 million, and operational losses of RM10.1 million. In Q3 2014, the company’s after-tax loss was RM199.8 million and stockholding loss was RM153.7 million (from average dated Brent marker of USD110/bbl in July 2014 to Sept 2014 of USD97/bbl). The refinery processed 9.5 million barrels of crude oil, and this is higher by 1.6% as compared to Q3 2014.

Commenting on the results, Amir Bakar, Managing Director of the Shell Refining Company (Federation of Malaya) Berhad said, “This year’s financial results reflected the exceptionally challenging year we faced against a tough business landscape. The biggest impact was from stockholding loss, the result of steeply declining oil prices worldwide. We were further impacted by tight refining margins in 2014 from continued over-capacity in the marketplace.”

“The impairment of RM461 million was done in accordance with accounting standards. It is not a cash transaction, and thus is not a cash loss,” explained Amir.

The Company will continue to pursue operational excellence, proactive margin improvement and cost effectiveness whilst maintaining a strong Health, Safety and Environment performance.

Media Enquiries :

Issued on behalf of Shell Refining Company, Malaysia. For further media enquiries, contact:

Mr. Leigh Wong, Head of Media Relations & Issues Management Email: leigh.wong@shell.com

About Shell Refining Company

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 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, some 90% of which are consumed within Malaysia.