Kuala Lumpur, May 25 - Esso Malaysia Berhad today announced the Company's first quarter results for the period ended March 31, 2006:

The Company recorded an after tax loss of RM 8 million for the first quarter of 2006, compared to the RM 16 million profit in the same quarter in 2005. However, this represents an improvement compared to the RM 12 million loss incurred in the immediately preceding fourth quarter 2005. 

Crude costs continued on an upward trend, increasing by about 15% over the quarter to slightly below US$ 70 per barrel, squeezing margins and impacting profitability. This was partially mitigated by inventory holding gains, Ringgit strengthening and other positive impacts.

Crude runs for the quarter remained low at 69 thousand barrels per day mainly driven by unfavourable crude economics. Local market sales were higher compared to the same quarter last year, reflecting the success of various retail marketing initiatives implemented in 2005.

Revenues for the quarter increased to RM 2.1 billion compared to RM 1.8 billion in the same quarter last year driven by higher product prices.

The increasingly competitive environment and likely market volatility pose many challenges to the Company's operating environment in 2006. We will continue to focus on maintaining a cost effective operation and upgrading our service station network and customer-oriented offerings to remain competitive.