Condensed Income Statements
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Condensed Income Statements Condensed Income Statements Document Transcript

  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 Following the Shell Refining Company (Federation Of Malaya) Berhad (“the Company”) Board of Directors’ Meeting on 23 February 2005, the Company is pleased to announce its financial results for the three months ended 31 December 2004. This interim report is prepared in accordance with MASB 26 “Interim Financial Reporting” and paragraph 9.22 of the Bursa Malaysia Securities Berhad (“BMSB”) Listing Requirements, and should be read in conjunction with the Company’s financial statements for the year ended 31 December 2003. Page 1 of 23
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 Condensed Income Statements Unaudited Individual Quarter Cumulative Quarters 3 months ended 12 months ended Note 31.12.2004 31.12.2003 31.12.2004 31.12.2003 RM’000 RM’000 RM’000 RM’000 Sales 2,185,650 1,447,676 7,510,539 5,496,898 Cost of sales -1,967,712 -1,324,530 -6,717,641 -5,210,074 Other operating income - Others 1,397 3,992 14,095 19,823 Administrative expenses -9,730 -14,196 -40,309 -30,111 Other operating expenses -808 187 -9,000 -8,929 Profit from operations 208,797 113,129 757,684 267,607 Finance cost -4,522 -3,305 -15,776 -17,983 Individual Quarter 204,275 Cumulative Quarters 741,908 Profit from ordinary activities before tax 109,824 249,624 3 months ended 6 months ended Note 30.06.2004 30.06.2003 30.06.2004 30.06.2003 Taxation 5 -16,515 RM’000 -50,874 RM’000 -71,564 RM’000 -67,340 RM’000 ProfitSales ordinary activities after tax from 187,760 1,777,150 58,950 1,264,350 670,344 3,304,616 182,284 2,698,757 Expenses excluding finance cost and tax (1,583,542) - (1,309,762) (2,975,011) - (2,655,289) Minority interest - - Other operating income 3,155 2,981 6,324 7,226 Net profit for the period 187,760 58,950 670,344 182,284 Profit from operations 196,763 (42,431) 335,929 50,694 Estimated average annual effective tax rate 8.08% 46.32% 9.65% 26.98% Finance cost (1,742) (3,585) (3,753) (7,803) sen sen sen sen Profit from ordinary activities before tax 195,021 (46,016) 332,176 42,891 Earning per share: - basic Taxation 6 5 62.59 (19,724) 19.65 1,043 223.45 (34,417) 60.76 (5,846) - diluted 6 N/A N/A N/A N/A Profit from ordinary activities after tax 175,297 (44,973) 297,759 37,045 Minority interest - - - - Net profit for the period 175,297 (44,973) 297,759 37,045 Estimated average annual effective tax rate 10.11% 2.27% 10.36% 13.63% sen sen sen sen Earning per share: - basic 6 58.43 -14.99 99.25 12.35 - diluted 6 N/A N/A N/A N/A Page 2 of 23
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 The notes set out on pages 6 to 12 form an integral part of, and should be read in conjunction with this interim financial report. Page 3 of 23
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 Condensed Balance Sheet Unaudited As at As at Note 31.12.2004 31.12.2003 RM'000 at As RM'000 at As Note 30.09.2004 31.12.2003 Non-current assets RM'000 RM'000 Property, plant and equipment 7 1,342,216 1,410,657 Non-current assets Investment properties - - Intangible assetsand equipment Property, plant 7 1,343,375 - 1,410,657 - Investment properties Other non-current assets - - - - Intangible assets Total non-current assets 1,342,216 - 1,410,657 - Other non-current assets - - Current assets 1,343,375 1,410,657 Inventories 627,331 384,567 Current assets 167,515 Trade receivables 169,527 Inventories 768,096 384,567 Other receivables and prepayments 5,534 6,119 Receivables, deposits and prepayments 1,009,491 657,508 Amounts receivable from related companies 730,543 481,862 Marketable securities - - Bank balances 164,869 1,179 Deposits, bank and cash balances 2,159 11,229 Deposit with a licensed bank - 10,050 1,779,746 1,053,304 Total current assets 1,695,792 1,053,304 Less: Current liabilities Less: Current liabilities Provisions - - Trade and other payables 352,171 434,767 Payables (801,503) (533,188) Amounts payable to related companies 270,622 (29,320) 99,804 Tax Liabilities (1,383) Bank balances Short term borrowings 10 10 1,053 - - - Current portion ofof long term debt Current portion long term debt 10 10 91,200 (91,200) 91,200 (91,200) Total current liabilities Dividends payable 715,046 (21,600) 625,771 - (943,623) (625,771) Net current assets 980,746 427,533 Net current assets 2,179,498 1,838,190 Less: Non current liabilities Deferred tax liabilities liabilities Less: Non current 273,184 259,556 Provisions tax liabilities Deferred - 273,078 - 259,556 Long term borrowings Provisions 10 486,400 - 577,600 - Long term borrowings 10 759,584 509,200 837,156 577,600 782,278 837,156 Total net assets employed 1,563,378 1,001,034 1,397,220 1,001,034 Capital and reserves Share capital reserves Capital and 11 300,000 300,000 Revaluation reserve Share capital 11 15,738 300,000 15,738 300,000 Revaluation reserve Retained profit 15,738 1,247,640 15,738 685,296 Retained profit Shareholders' equity 1,081,482 1,563,378 685,296 1,001,034 Shareholders' equity 1,397,220 1,001,034 Page 4 of 23
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 The notes set out on pages 6 to 12 form an integral part of, and should be read in conjunction with this interim financial report. Page 5 of 23
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 Condensed Statement of Changes in Equity Unaudited Non-distributable Distri-butable Revaluation Share Share and other Retained Note capital premium reserves earnings Total RM'000 RM'000 RM'000 RM'000 RM'000 Balance as at 1 January 2003 300,000 - 18,651 546,212 864,863 Change in accounting policy (2,913) - (2,913) 300,000 - 15,738 546,212 861,950 Net profit for the 12-months period - - - 182,284 182,284 Dividend for the year ended: - 31 December 2002 (final) - - - (32,400) (32,400) - 30 September 2003 (interim) - - - (10,800) (10,800) - - Balance as at 31 December 2003 300,000 - 15,738 685,296 1,001,034 Balance as at 1 January 2004 300,000 - 15,738 685,296 1,001,034 Net profit for the 12-months period - - - 670,344 670,344 Dividend for the period ended: - 31 December 2003 (final) - - - (43,200) (43,200) - 31 December 2004 (interim) - - - (64,800) (64,800) Balance as at 31 December 2004 - - - 1,247,640 1,563,378 Page 6 of 23
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 The notes set out on pages 6 to 12 form an integral part of, and should be read in conjunction with this interim financial report. Page 7 of 23
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 Condensed Cash Flow Statement Unaudited 12 months ended Note 31.12.2004 31.12.2003 RM'000 RM'000 Cash flows from operating activities Profit/(Loss) after taxation 670,344 182,284 Adjustment for: Depreciation 115,016 106,623 Property, plant and equipment written (back) / off (1,048) 287 Turnaround cost capitalized (11,705) - Gain on disposal of property, plant and equipment - (22) Taxation 71,564 67,340 Exchange losses on foreign currency translation 163 1,686 Interest income (4,151) (922) Interest expense 12,344 14,635 852,527 371,911 Distri- Changes in working capital Non-distributable butable (Increase)/decrease in inventories Revaluation (242,764) 12,055 Share Share and other Retained 2,597 Decrease/(increase) in trade and other debtors (45,667) Note capital premium reserves earnings Total Increase/(decrease) in trade and other creditors RM'000 RM'000 RM'000 (97,537) RM'000 (51,016) RM'000 Increase in amounts receivable from related companies (248,681) (45,665) Net (increase)/decrease in amount due from related companies 170,818 (51,193) Balance as at 31 December 2002 Cash generated from operations 300,000 - 18,651 546,214 436,960 864,865 190,425 - change in accounting policy 25 - - (2,913) - (2,913) As restated Interest received 300,000 - 15,738 546,214 4,151 861,952 922 Interestprofit for the 12-month period Net paid - - - (12,114) 182,284 (14,748) 182,284 Taxation paid (45,801) (3,542) Dividend for the year ended: Net - 31 December 2002 (final) operating cash generated from activities - - - 383,196 (32,400) 173,057 (32,400) - 30 June 2003 (interim) - - - (10,800) (10,800) Cash flows from December 2003 Balance as at 31 investing activities 300,000 - 15,738 685,298 1,001,036 Purchase of property, plant and equipment (33,822) (18,664) Proceeds from disposal of 2003property, plant and equipment - 92 Balance as at 31 December 300,000 - 15,738 685,298 1,001,036 Net cash used in investing activities (33,822) (18,572) Net profit for the 6-month period - - - 297,759 297,759 Cash flow for the year ended: activities Dividend from financing Repayment of long term borrowings - 31 December 2003 (final) - - - (91,200) (43,200) (91,200) (43,200) Repayment of short (special interim) - 31 December 2003 term borrowings - - - (21,600) - (21,600) (8,948) - 30 June 2004 (interim) - - - - - Dividends paid (105,587) (43,304) Net Balance as at 30 June 2004 cash (used in)/generated from financing activities 300,000 0 15,738 (196,787) 918,257 (143,452) 1,233,995 Net increase in cash and cash equivalent 152,587 11,033 Cash and cash equivalent at the beginning of the year 11,229 196 Cash and cash equivalent at the end of the year 163,816 11,229 Page 8 of 23
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 The notes set out on pages 6 to 12 form an integral part of, and should be read in conjunction with this interim financial report. Page 9 of 23
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 6 months ended Note 30.06.2004 30.06.2003 RM'000 RM'000 Cash flows from operating activities Profit/(Loss) after taxation 297,759 37,045 Adjustment for: Depreciation 52,506 54,573 (Profit)/Loss from disposal of property, plant and equipment (65) - Taxation 34,417 5,846 Exchange (gains)/losses on foreign currency translation (863) 408 Interest income (1,715) (298) Interest expense 5,468 8,101 387,507 105,676 Changes in working capital (Increase)/decrease in inventories (156,142) 18,882 (Increase)/decrease in trade and other debtors 33,673 50,237 Increase/(decrease) in trade and other creditors 162,783 (288,074) Net (increase)/decrease in amount due from related companies (318,393) 159,167 Cash generated from operations 109,428 45,888 Interest received 1,715 298 Interest paid (5,468) (8,101) Taxation paid - - Net cash generated from operating activities 105,675 38,084 Cash flows from investing activities Purchase of property, plant and equipment (3,437) (4,499) Proceeds from disposal of property, plant and equipment - - Net cash used in investing activities (3,437) (4,499) Cash flow from financing activities Repayment of long term borrowings (45,600) (45,600) Repayment of short term borrowings - 45,530 Dividends paid (64,800) (32,400) Net cash (used in)/generated from financing activities (110,400) (32,470) Net increase in cash and cash equivalent (8,162) 1,116 Cash and cash equivalent at the beginning of the year 11,229 - Cash and cash equivalent at the end of the year 3,067 1,116 Page 10 of 23
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 Notes to the Financial Information 1 Basis of preparation This interim report is prepared in accordance with MASB 26 “Interim Financial Reporting” and paragraph 9.22 of the BMSB Listing Requirements, and should be read in conjunction with the Company’s financial statements for the year ended 31 December 2003. The accounting policies and presentation adopted for the interim financial report are consistent with those adopted for the annual financial statements for the year ended 31 December 2003. 2 Audit report The audit report of the Company’s preceding annual financial statement was not subjected to any qualification. 3 Comments about Seasonal or Cyclical Factors The Company’s operation is not affected by any seasonal or cyclical factors. 4 Individually significant items The Company has nothing to disclose as regards significant items in the quarterly financial statements under review. 5 Changes in Estimates There were no changes in estimates that have had a material effect in the current quarter. 6 Debt and equity securities The Company has nothing to disclose with respect to issuance and repayment of debt and equity securities, share buy-backs, share cancellations, shares held as treasury shares and resale of treasury shares for the current financial period to date Page 1 of 23 1
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 Notes to the Financial Information 7 Dividends 12 months ended 12 months ended 31 December 2004 31 December 2003 Amount of Amount of dividend net dividend net of 28% tax of 28% tax RM ‘000 RM ‘000 Special interim gross dividend of 10 sen per RM 1 unit of share less tax at 28 % paid on 4 June 2004. (2003 : nil ) 21,600 0 Interim gross dividend of 10 sen per RM1 unit of share less at 28% paid on 8 Oct. 2004 (2003: 5 sen per RM 1 unit of share 21,600 10,800 less tax at 28%) Special Interim gross dividend of 10 sen per RM 1 unit of share less tax at 28%, paid on 0 24 December 2004 (2003 : nil ) 21,600 Proposed final gross dividend of 35 sen per RM 1 unit of share less tax at 28% ( 2003 : 20 sen per RM 1 unit of share less tax 43,200 at 28% ) 75,600 8 Segmental Reporting The Company is principally engaged in the oil and gas industry namely refining and manufacturing of petroleum products. Accordingly, no segmental information is considered necessary for analysis by industry segments. Page 2 of 23 2
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 Notes to the Financial Information 9 Carrying amount of revalued assets The Company has nothing to disclose as regards valuations of property, plant and equipment in the quarterly financial statements under review. 10 Significant post balance sheet event The Company has nothing to disclose as regards significant post balance sheet event s in the quarterly financial statements under review. Page 3 of 23 3
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 11 Changes in Composition of the Company All the results of the Company are based upon existing continuing operations. There is no change in the composition of the Company during the interim period, including business combination, acquisition or disposal of subsidiaries and long-term investments, restructurings and discontinuing operations. There is also no unusual transaction effecting assets, liabilities, equity, net income and cash flow. 12 Contingent Liabilities (a) In December 1996, employees were given the option of either remaining in the SMRBF or transferring to a defined contribution scheme ('DCS'). In conjunction with this, certain assets of the SMRBF were transferred to the Shell Malaysia Provident Fund ('SMPF'). The transfers were effective 1 May 1997. Arising from the transfer of assets from the SMRBF to the SMPF, the Company has provided guarantees to members in relation to: (i) the capital sum transferred; (ii) a minimum return of 2.5% per annum on that capital sum; and (iii) death in service benefits. The Company, as a Member Company of the SMPF, has supported the resolution of the Founding Company that the SMPF shall come to an end on 31 December 2003 (“Closure Date”) and that members' balances in SMPF as at Closure Date be transferred to the Employees’ Provident Fund. With such transfer of members’ balances, the Company no longer provides guarantees to members in relation to (i) and (ii) above. Death in service benefit for the ex-SMRBF members will continue to be guaranteed the Company. Based on the information currently available, it is not possible to estimate the likely outcome of the liabilities with regards to death in service benefits as the liabilities are dependent on individual circumstances. Page 4 of 23 4
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 Notes to the Financial Information 13 Tax Taxation for the quarter ending 31 December 2004 amounting to RM 16,515,000 comprises: 3 months ended 12 months ended 31.12.2004 31.12.2003 31.12.2004 31.12.2003 (RM’000) (RM’000) (RM’000) (RM’000) Income tax for current period (16,409) 10,374 (57,935) (1,931) Transfer from deferred tax (106) (61,247) (13,629) (65,409) (16,515) (50,873) (71,564) (67,340) The difference between the statutory tax rate and the effective tax rate is mainly due to the depreciation expense of non-qualifying assets and taxation exempt income under pioneer status. The amount of unutilised reinvestment allowance as at 31 December 2004 arising from the Company’s pioneer status is RM 130 million. 14 Unquoted investments and/or properties The Company has nothing to disclose with respect to sale of investments and/or properties (other than fixed assets in the normal course of business) in the quarterly financial statements under review. 15 Quoted Securities There were no purchases or disposal of quoted securities during the current quarter. 16 Corporate proposal The Company does not have anything to report as regards the status of corporate proposals. 17 Financial instruments The Company does not have any financial instruments to disclose. Page 5 of 23 5
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 Notes to the Financial Information 18 Bank borrowings Details of the Company’s bank borrowings as at end of the period are as follows: RM’000 Short term borrowings (unsecured) - Current portion of term loan (unsecured) 91,200 Term loan (unsecured) less current portion 486,400 577,600 Restated in loan’s original currency: USD’000 RM’000 equivalent Bank borrowings denominated in foreign currency (USD) 152,000 577,600 19 Earnings per share 3 months ended 12 months ended 31.12.2004 31.12.2004 31.12.2004 31.12.2004 (a) Basic earnings per share Net profit for the period (RM’000) 187,760 58,949 670,344 182,284 Weighted average number of ordinary shares in issue (‘000) 300,000 300,000 300,000 300,000 Basic earnings per share (sen) 62.59 19.65 223.45 60.76 (b) Diluted earnings per share (sen) N/A N/A N/A N/A 20 Capital commitments Capital commitments not provided for in the financial statements as at 31 December 2004 are as follows: RM’000 Authorised by the Directors and contracted 3,596 Authorised by the Directors and not contracted 3,563 7,159 Analysed as follows: Page 6 of 23 6
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 - Property, plant and equipment 7,159 Page 7 of 23 7
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 Notes to the Financial Information 21 Profit Before Taxation The quarterly profit before taxation is higher compared to the same quarter of the previous year. The Company recorded profits before tax of RM 204 million for the fourth quarter of 2004 compared to RM 110 million in the fourth quarter of 2003 (also see accompanying Management Commentary). 22 Company Performance A review of the Company’s performance in the reporting period is provided for in the accompanying Management Commentary. 23 Current Year Prospect A commentary on the Company’s current year prospects is provided for in the accompanying Management Commentary. 24 Change in Accounting Policy In 2003, the Company changed its accounting policy to comply with MASB 25 Income Taxes. In previous years, deferred tax was recognised for timing differences except when there was reasonable evidence that such timing differences would not reverse in the foreseeable future. The tax effect of timing differences that resulted in a debit balance or a debit to the deferred tax balance was not carried forward unless there was a reasonable expectation of its realisation. The potential tax saving relating to a tax loss carry forward was only recognised if there was assurance beyond any reasonable doubt that future taxable income would be sufficient for the benefit of the loss to be realised. Where there was intention to dispose of revalued assets, the deferred tax relating to such assets was recognised through a transfer from the related revaluation surplus. No provision nor disclosure was made of this tax effect where the Company intended to hold such assets for the foreseeable future. The Company has since financial year 2003 changed its accounting policy to recognise deferred tax on temporary differences arising between the amounts attributable to assets and liabilities for tax purposes and their carrying values in financial statements. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which deductible temporary differences or unused tax losses can be utilised. Page 8 of 23 8
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 Page 9 of 23 9
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 Management Commentary DIVIDEND The Directors have agreed to recommend a final dividend of 35 sen per unit of share of RM1.00 each, less 28% Malaysian Income Tax in respect of the financial year ending 31 December 2004, payable on 10 June 2005 to the shareholders registered in the Record of Depositors at the close of business on 27 May 2005. This dividend recommendation is subject to the approval of shareholders at the Company’s forthcoming Annual General Meeting. • COMPANY PERFORMANCE • Quarterly income after tax of RM 188 million; fourth consecutive quarter of record earnings • Record net income after tax for the financial year 2004 of RM 670 million The Company posted an after-tax net income of RM 188 million for the fourth quarter of 2004, an all-time record. The exceptional financial results for the quarter was mainly due to a combination of continued strong refining margins and an excellent operational performance. This financial period’s profits include an after-tax stockholding loss of RM 48 million partially offset by a RM 11 million accounting adjustment relating to the capitalisation of certain costs previously expensed. This result for Quarter 4 2004 represents a very significant increase in profits when compared to the net profit after tax of RM 59 million recorded in the same quarter of 2003. Cumulative net income after tax for 2004 amounted to an impressive RM 670 million representing an increase of RM 488 million when compared to the net income after tax of RM 182 million recorded in 2003. Overall in 2004, the Company benefited from an after-tax stockholding gain of RM 80 million (2003: stockholding gain net of tax of RM 12 million) due to the overall increase in oil prices in 2004. This stockholding effect accounts for 12% of the Company’s total 2004 net income after tax. The refinery processed 10.55 million barrels of crude oil and feedstock and sold 10.88 million barrels of products during the quarter. The Company’s continued strong focus on safety has allowed it to sustain zero Lost Time Injury (LTI) up to 31 December 2004, resulting in 3.58 million man-hours without any LTI since 22 May 2001. Page 10 of 23 10
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 CURRENT YEAR PROSPECTS •Strong refining margins expected to hold in the coming quarter •Continuous efforts to achieve operational excellence It is expected that the current strong refining margin situation will continue to hold in the coming quarter. However, any weakening in oil prices may have a negative impact on the Company’s financial results, given the stock valuation accounting practice adopted by the Company. The Company will continue to pursue operational excellence, proactive margin improvement and cost reduction, whilst maintaining strong Health, Safety and Environment performance. • • 24 Page 11 of 23 11
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 Page 12 of 23 12
  • Company No. 3926 U SHELL REFINING COMPANY (FEDERATION OF MALAYA) BERHAD (Incorporated in Malaysia) Interim report for the three months ended 31 December 2004 Page 13 of 23 13