Kuala Lumpur, Aug 17 - Esso Malaysia Berhad today announced the Company's second quarter results for the period ended June 30, 2006:

The Company recorded an after tax profit of RM93 million for the second quarter compared to a profit of RM15 million in the same quarter last year. The improved financial performance brings profits for the first half of 2006 to RM85 million, RM54 million higher than the first half of 2005.

Earnings for controlled petroleum products were more stable during the quarter following a change in the product cost recovery under the Automatic Pricing Mechanism, which reduced timing impacts. Refining margins improved during the quarter, although continued to be under pressure. Second quarter earnings also reflected the favourable impact of higher prices on inventory valuations.

Refinery crude runs for the quarter averaged about 74 thousand barrels per day, about the same level as the second quarter of 2005.  Local market sales were higher reflecting the benefits from various retail marketing initiatives and continued expansion of the service station network.

Revenues for the quarter increased by about 30% to RM2.6 billion versus the same quarter last year driven by higher product prices.

The country's economic outlook continues to be strong, fuelling demand for petroleum products. However, the business outlook for the industry remains vulnerable to the relative movements in crude and petroleum product prices.

In this uncertain business environment, the Company will continue to focus on matters that are within its control, namely cost containment and operational efficiency.