Kuala Lumpur, May 22 - Esso Malaysia Berhad today announced the Company's first quarter results for the period ended March 31, 2007:

The Company recorded an after tax profit of RM17 million for the first quarter of 2007 compared to a loss of RM8 million in the same period in 2006.

The improved first quarter results reflected good margins and strong performance from the Company’s marketing business.  Refinery margins remained weak, reflecting higher cost crude feedstock and unfavourable product price spreads.

Revenues for the first quarter declined to RM1.9 billion versus RM2.1 billion a year ago, reflecting lower export sales volumes and foreign exchange effects; however sales volumes to the higher margin local market grew.

The Malaysian economy is expected to continue to grow and fuel demand for petroleum products. Nevertheless, the business environment remains challenging as price volatility and intense competition are likely to persist. In this environment the Company will remain focused on cost containment, operating efficiency, and other matters within its control.