Kuala Lumpur, November 22 - Esso Malaysia Berhad today announced the Company's third quarter results for the period ended September 30, 2006:

The Company recorded an after tax loss of RM31 million for the third quarter compared to about breakeven in the same quarter last year.

Revenues for the third quarter increased to RM2.6 billion versus RM2.2 billion in the third quarter of 2005 from higher product prices. Operating performance for the quarter was strong, with sales growth in the controlled petroleum products sector reflecting the benefits of various retail initiatives.  Marketing margins also improved for the period, following changes earlier this year to the government’s Automatic Pricing Mechanism that eliminated lag effects.  Overall however, net results were negatively impacted by weaker refining margins and adverse inventory valuation effects.

For the nine months year-to-date, the Company recorded a profit of RM55 million, RM23 million higher than the corresponding period in 2005 mainly due to stronger marketing margins and sales volume growth.  Revenues for the first nine months were RM7.3 billion, up from RM6.1 billion in the prior year, from higher product prices.

Given the positive outlook for the Malaysian economy, demand for petroleum products is expected to remain robust. However, our business continues to be vulnerable to the movements in crude oil prices. In this uncertain environment, the Company will continue to focus on cost containment, operational efficiency and other matters within its control.