Petron Malaysia Refining & Marketing is set to exit the lubricants market and allocate resources to more profitable areas.
The petroleum products maker and distributor has seen a stronger ROI from its retail fuel marketing and commercial business which includes liquefied petroleum gas (LPG industrial and wholesale fuels and aviation fuels.
Petron is a well-known regional name in petroleum refining and supply/distribution and both support its retail and commercial businesses. The company has estimated that marketing a new brand of lubricants across Malaysia would not yield immediate returns.
Petron also announced it will acquire its sister company, Petron Fuel International Sdn Bhd’s (PFISB) LPG marketing and sale business.
The agreement for the acquisition is for a period of two years and may be extended by mutual agreement by the two companies. The total consideration over the duration of the agreement is expected to be around RM16.7m($5.7m).