PetronM-Annual Report 2014

Changing The
Landscape
2014 Annual Report & Accounts

PB / 1 Petron Malaysia Refining
Petron Malaysia Refining & Marketing
& Marketing Bhd Bhd (3927-V)
OUR STORY
The Petron Malaysia Group is part of Petron Corporation in the Philippines, a rapidly emerging
Asian oil company.
Petron Corporation joined Malaysias dynamic and progressive oil industry with the acquisition
of ExxonMobils downstream businesses in March 2012. Petron Malaysia subsidiaries comprise
of Petron Malaysia Refining & Marketing Bhd, a publicly-listed company listed on Bursa Malaysia,
Petron Fuel International Sdn Bhd, and Petron Oil (M) Sdn Bhd.
Petron Malaysia Refining & Marketing Bhd operates Petron Port Dickson Refinery (PDR), which
has a rated capacity of 88,000 barrels per day, producing a wide range of petroleum products
which include gasoline, diesel, liquefied petroleum gas (LPG), industrial and commercial fuels,
and aviation fuel. Our world-class fuels are distributed from seven strategically-located depots
and terminals.
Through this robust distribution network, we are able to ensure a continuous and reliable supply
of quality fuels to our various customers.
As an Asian company with a global mindset, we look forward to becoming an integral part of
your lives as we fuel journeys through our network of more than 560 service stations nationwide,
including stations belonging to our sister companies. Currently, we have completed the rebranding
and upgrading of Esso and Mobil stations across the country to reflect our new identity.
Our new Petron service stations, with its distinctive blue and red logo, embody what our brand
stands for innovative products, excellent service, successful partnerships built on trust, and
caring for our customers.
We are proud to be part of your lives as we fuel safe journeys with our top-of-the line gasolines,
Blaze 95RON, Blaze 97RON, and Diesel Max. Petron service stations also provide a one-stop
service experience to travelers on the road. Our convenience store offers amenities such as
shopping marts and fast food restaurants.
Petrons premier LPG brand, Petron Gasul provides efficient energy for the Malaysian households.
We help power the Malaysian economy by providing commercial fuels to key industries.
Beyond our business agenda, we take our corporate and social citizenship to heart by supporting
safety, environment, and education programs to ensure sustainability and contribute to social
development. Through the combined experience and expertise of our highly-skilled and motivated
management and personnel, and our strong foundations in the oil and gas industry, we are
dedicated and passionate about our vision to be the leading provider of total customer solutions
in the oil sector and its allied businesses.
2/1 Petron Malaysia Refining
& Marketing Bhd
CONTENTS
Our Vision and Our Mission 3 Board Audit & Risk Management
How Petron Reaches You 4 Committee Report 43
Our Facilities in Malaysia 5 Financial Statements 46
Message to Shareholders 6 Independent Auditors Report 97
Changing the Landscape 11 Information on Shareholdings 99
Sustainability Report 17 Top 10 Properties 101
Five-Year Summary Charts 22 Notice of Annual General
Meeting 103
2014 Highlights 23
Statement Accompanying
Board of Directors 24
Notice of Annual General
Profile of Directors 26 Meeting 104
Corporate Information 28
Corporate Governance 29 Proxy Form
OUR VISION OUR MISSION
To be the leading provider of We will achieve this by:
total customer solutions in Being an integral part of our customers lives, exceeding
the oil sector and its allied expectations and meeting changing needs, delivering a consistent
businesses. customer experience through quality products and innovative
services;
Developing strategic partnerships in pursuit of growth opportunities;
Fostering an entrepreneurial culture that encourages teamwork,

innovation, and excellence;
Acting with professionalism, integrity, and fairness at all times;
Adhering to the strictest safety and environmental standards; and
Promoting the best interests of all our stakeholders, and caring for
our community.

& Marketing Bhd
how Petron
reaches you
Crude oil
refinery
Transportation,
storage, and logistics
retail LPG Commercial
Petron service stations provide Petron Gasul LPG in 12kg and Petron markets a wide range
a delightful and rewarding 14kg provides households of industrial fuel products
one-stop service experience for with efficient, clean-burning including Automotive Diesel Oil
travelers on the road. liquefied petroleum gas. (ADO), Mogas, Kerosene and
Jet A1 to industries that power
the Malaysia economy.
Our Facilities
in malaysia
3
8
4 9
5 6
2
1
10
1. Port Dickson Refinery, Negeri Sembilan More than
560
2. Port Dickson Terminal, Negeri Sembilan
3. Bagan Luar Terminal, Penang
4. Kuantan Terminal, Pahang*
5. Westport Terminal (JV-BHP Terminal), Selangor*
6. KLIA Aviation Facility, Kuala Lumpur Petron
7. Pasir Gudang Terminal (JV-Caltex Terminal), Johor* service stations
8. Sepanggar Bay Terminal, Sabah* nationwide
9. Sandakan Terminal, Sabah*
10. Tawau Terminal, Sabah*
* PMRMB affiliate terminals

& Marketing Bhd
Message to
Shareholders
Dear Shareholders,
Fiscal 2014 was a year
of challenges, but more
importantly a year in which
we continued to grow our
business and strengthen the
Petron brand.
Message to Shareholders
Global oil prices fell sharply in the second half of 2014 as world oil supply rose much Despite these external
higher than demand, and oil-producing countries refused to cut production, instead challenges, Petron
opting to stockpile oil supplies despite a tapering off in demand as economies in
Europe and Asia weakened.
Malaysia focused on
completing strategic
The price of benchmark Dated Brent crude fell by 44% from an average of US$112/ projects that will
barrel in June to US$63/barrel in December. This development weighed on the global further strengthen our
industry including Petron Malaysia Refining & Marketing Bhd (PMRMB). competitive advantage
and prime our company
Despite these external challenges, Petron Malaysia focused on completing strategic for growth.
projects that will further strengthen our competitive advantage and prime our company
for growth. We remained committed to give our customers the unique Petron
experience through our world-class fuels, product innovations, upgraded facilities,
and excellent service. By keeping our focus on fueling satisfaction, we enhanced our
market presence and earned the trust and confidence of our customers.
Changing the Landscape A strong retail

Three years since Petron became a major player in the Malaysian oil industry, we have network combined
changed the competitive landscape, figuratively and literally. with the trusted Petron
brand has proven to
PMRMB, together with our affiliate companies Petron Fuel International Sdn Bhd and
Petron Oil (M) Sdn Bhd (Petron Malaysia Group), is pleased to report that we have
be an advantage in
completed our upgrading and rebranding program, having transformed all 550 former strengthening our
Esso and Mobil stations to the Petron brand. Our distinct blue and red logo can now presence.
be seen along all major roads and highways and even in far-flung rural areas. We
completed this major initiative ahead of our targets and in just under three years.
The completion of the rebranding and upgrading program is a significant milestone.

A strong retail network combined with the trusted Petron brand has proven to be an
advantage in strengthening our presence.
Complementing this is our ongoing retail network expansion program which aims to
bring the Petron brand closer to consumers. The Group has already put up 10 service
stations in 2014 while 20 more are in various stages of construction. We will continue
to expand our network so there is a Petron station wherever and whenever our
customers need us.

& Marketing Bhd
100% 10 29.4
Completion
of rebranding
new milLion barrels
TOtal Sales
service
program stations Volumes in 2014
Loyalty Innovations In the future, we will

Nearly two million consumers have signed on to our Petron Miles Privilege Card. Aside definitely come up with
from earning points, Petron Miles cardholders get discounts and privileges from our even more creative
growing number of merchant partners. ways to better serve
We also introduced the Petron Fleet Card, which is equipped with an advanced
our customers.
microchip technology for better control and security. We are now serving more than
4,000 fleet corporate customers since its launch.
The rebranding of our service stations, the launch of pioneering card solutions and other
value-added services have resulted in increased patronage of our products. In the future,
we will definitely come up with even more creative ways to better serve our customers.
Enhancing our Supply Chain to Serve You Better We continue to invest

We continue to invest in logistics projects with the aim of delivering our fuels in a in logistics projects with
more efficient, reliable, and environment-friendly manner. This has become even more the aim of delivering
important at a time when we are experiencing strong demand for Petron products. our fuels in a more
The link from the Port Dickson Refinery to the multi-product pipeline serving the
efficient, reliable, and
Klang Valley Distribution Terminal will be completed this year, making the supply environment-friendly
of products from our refinery to the Klang Valley market more efficient, safe and manner.This has become
cost-effective. even more important
at a time when we are
In line with the governments mandate to provide cleaner fuels, we rolled out B7 experiencing strong
biodiesel fuels and began upgrading our terminals to ensure the readiness of our demand for Petron
facilities to supply Euro 4M fuels.
products.
Financial Performance
We have always viewed every relationship with our customers as a partnership,
a shared journey thats anchored on trust and reliability. We are proud to say that
this affinity continues to help drive business growth even in the face of challenges
triggered by falling oil prices.
The loyalty and continued patronage of our customers led to a growth across all major
market segments, resulting in a 9% increase in domestic sales to 19.4 million barrels
versus 17.8 million barrels in 2013. Overall, total sales volumes improved to 29.4 million
barrels last year from 29 million barrels the previous year.
While domestic sales volumes rose, revenues slightly dropped to RM10.9 billion from
RM 11.1 billion the previous year due to lower selling prices over the last two quarters
of 2014. PMRMB ended the year with an after-tax loss of RM64.5 million.
Board matters
There were no changes to the composition of the Board during the year; Tan Sri Abdul
Halim Ali is set to retire at the end of the Annual General Meeting in 2015. Tan Sri Halim
has served the Board with distinction since his appointment in 2001.
Your Directors attendance and participation in all Board and Committee meetings
in 2014 were exemplary. We have a Board comprised of individuals who possess
excellent knowledge and experience in business and governance. They each have a
high level of integrity, strong sense of ethics, and work cohesively as a Board to act in
the best interest of the Company. The high ratings, achieved by each of the Directors in
the end of year annual evaluation exercise conducted by the Nominating Committee,
is testimony of their caliber.
In spite of the challenges in 2014, we made significant investments, introducing

innovations in virtually every aspect of our business. We are well positioned to rise
above these challenges and have looked into our internal programs to further increase
productivity and optimise our operating costs.
Considering the losses suffered by the Company and the continued uncertainty in oil
prices, there is a need to manage and preserve our resources to finance our planned
programs that would strengthen and further grow our business and deliver long-term
value for you, our valued shareholders.

& Marketing Bhd
Safer and Brighter Journeys Moving forward, we

Moving forward, we are committed to give our customers a much more rewarding and are committed to give
meaningful experience at every touch point. All our initiatives network expansion, all our customers a
more robust logistical infrastructure, and products innovations are towards delivering much more rewarding
that promise.
and meaningful
We will also continue to support national safety and security advocacy programs. experience at every
In the years to come, we see increased participation in initiatives such as the touch point.
United Against Crime and the Road Safety Program which make communities and
roads safer.
We will remain as the countrys staunch partner in nation-building through our support
to programs on education, sports, and the arts. We are looking forward to the next
Vision Petron Art & Painting Competition, which since 2012 has garnered hundreds
of student-participants from various universities and colleges. More importantly,
we will continue to aid the nation in rebuilding lives that have been and may be
adversely affected by various calamities.
Towards a Common Vision With our programs

There will definitely be more challenges ahead as our business expands to serve in place and in the
the needs of a dynamic Malaysian economy and a wider customer base. Yet you pipeline, we are
can be assured that Petron is a company that fulfills its commitments and promises. confident that our future
With our programs in place and many more in the pipeline, we are confident that our
future initiatives will allow us to serve our customers better, add more value to our
initiatives will allow us
stakeholders, and ultimately, play a bigger role in nation-building. to serve our customers
better, add more value
Lastly, we thank the Board members, management team and employees for their to our stakeholders, and
contribution to the Companys achievements during the year. We believe that our future ultimately, play a bigger
successes are dependent on our commitment to our shared values of leadership, role in nation-building.
professionalism, and teamwork. We also thank our shareholders, customers, business
partners, government agencies and media, who continue support not just our programs
but our advocacies as well. With your confidence and support, we will bring Petron
Malaysia to greater heights.
Terima kasih!
Ramon S. Ang
Chairman
29 April 2015
Changing
the landscape
It has only been three years since Petron its total count to 251 as of end 2014. With Treats, we hope to
entered the Malaysian market and yet it has be able to satisfy the needs of our consumers who are always
already become one of the most preferred on the go from grabbing necessities from food, beverages,
brands in this highly-competitive market. toiletries and even Petron lubricants to paying their bills and
Through the Petron brand, we are now performing banking transactions at the ATM inside the store.
an integral part of our customers lives,
More than just one-stop-shops, our service stations are also
fueling safe journeys, powering industries, safety hubs for anyone needing emergency police assistance.
and providing clean fuels to thousands of Petron Malaysia was the first oil company to transform all of
households. its service stations into Go-To Safety
Through the Petron Points (GTSP) in support of the Royal
Key to our growing market presence is brand, we are now an Malaysia Polices (RMP) initiative
our core strengths innovative products
and services, strong partnerships built
integral part of our against crime. Since the start of 2014,
on trust, and a genuine concern for our customers lives, fueling Petron has been assisting the Malaysian
customers. All these make each visit to safe journeys, powering police in promoting a safer environment
among local communities, by putting in
a Petron service station, each delivery industries, and providing
place safety systems and procedures
of Gasul and other petroleum products, a clean fuels to thousands
at all service stations. Coupled with our
rewarding experience. of households. well-lit and secure facilities, GTSP has
Customer-focused transformation made more motorists feel safe every
time they fuel up at Petron.
Petron Malaysia Group has rebranded 550 Esso and Mobil
stations. The transformation allowed our customers to enjoy Meanwhile, our card solutions, now carrying the Petron
high quality petroleum products such as Blaze 95RON, Blaze brand name, focuses on providing loyal customers more and
97RON and Diesel Max, better facilities and personalized better rewards, benefits and convenience. For instance, the
services from our well-trained staff.
To make every visit to our stations even

more worthwhile, we have incorporated
our very own convenience store Treats
into strategically located outlets bringing
251
close to
2
million
Petron miles Treats Mart
active cardholders nationwide
10 / 11 Petron Malaysia Refining

& Marketing Bhd
Treats
TREATS is our very own convenience store
brand that offers motorists a safe and relaxing
haven while on the road. Treats offers a
wide selection of food, beverages, motoring
products, ATMs, and a comfortable cafe.
changing the landscape
Our Smiles Card was also rebranded as Petron Miles Privilege

Card. We have nearly two million members and the number
continues to grow even as we continue to come up with ways
to provide customers greater value to meet their needs. For
every RM1 spent on fuels, Petron Miles Privilege cardholders
are rewarded one Miles point. Points collected do not expire
and are as good as cash, which means they can be used to buy
fuel, items from Treats, or from our rewards catalogue. Apart
from earned points, cardholders can also enjoy discounts and
other privileges from our Miles partners.
At Petron, we make sure that we thank and reward our loyal

customers. Last year, the Group held a Customer Appreciation Day
at 140 stations throughout the country where families participated
in fun activities and brought home Petron merchandise. Fueling
Petron Fleet Card, introduced in June last year, continues to
attract corporate customers as it offers a more efficient way
of managing vehicles. The card is equipped with an advanced
chip which secures every fuel transaction, prevents data
tampering, and protects user data.
Meanwhile, our card solutions,

now carrying the Petron brand name,
focuses on providing loyal customers
more and better rewards, benefits
and convenience.
football fever, five Petron Miles cardholders won a trip to Brazil

to watch the World Cup Finals. We also launched the Petrol
Crazy Campaign in partnership with Firefly and Star Radio Group
to giveaway RM72,000 worth of Petrons Blaze 97RON petrol as
a reward to Petron customers, Firefly passengers, and listeners
of Red FM and Suria FM.
Trusted brand of households and industries

In the LPG business, we succeeded in expanding our
customer base, both retail and commercial, through strategic
partnerships with new dealers and improvement of our
facilities. Our affiliate company upgraded a new carousel
in its bottling plant in Westport to fill more Gasul cylinders,
which allowed us to supply our growing number of customers.
We now have 1.6 million Gasul-branded cylinders in the market.
Coupled with our commitment to quality and safety, this has
led to thousands of Malaysian households switching to our

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Petron Gasul
Petron Gasul in 12kg and 14kg
provides clean-burning LPG, which
makes it the preferred LPG brand
for cooking of households and
commercial customers.
A safe and reliable supply chain

Port Dickson Refinery (PDR), the heart of our operations,
supplies the fuel needs of the central and northern regions
and is crucial to the countrys energy security. Given the
increasing demand of these markets, PDR continued to focus
on programs that will improve its production, plant reliability
and ultimately, delivery of world-class quality fuels to end-
users. Several initiatives implemented during the year include
the construction of two additional storage tanks that will be
completed in 2015 to reduce vessel delivery turnaround times
and improve loading efficiency, among others.
We continued our Logistics Master Plan in 2014 to have a

more robust supply chain. Our plans to link our refinery to the
multi-product pipeline serving the Klang Valley Distribution
Terminal remains on track and will be completed in May 2015.
Once done, PDR will be able to supply various products to
Klang Valley more efficiently and in a safe, secure and cost-
effective manner.
Given the increasing demand of

these markets, PDR continued to
focus on programs that will improve
its production, plant reliability and
brand. Our LPG sales grew by nearly 11% last year and we are ultimately, delivery of world-class
confident that we will continue to grow in this market. quality fuels to end-users.
We likewise thrived in the aviation
business. In 2014, we bagged new
contracts to service additional regional
airlines and major carriers in the Middle
East, an offshoot of our customer-
focused initiatives. More importantly,
we were able to service during the year,
two major airport terminals namely KL
International Airport and KLIA2, which
significantly increased our volumes. Our
sales grew 100% in this sector.
In commercial trade, external challenges,

which include cutthroat competition, did
not hinder us from achieving our goals
and exceed customer expectations.
Our excellent track record allowed us to
attract more customers, particularly in the
power industry. As a result, sales in the
Commercial sector surged by 32%.

& Marketing Bhd
continuing improvements based on a

strong culture that encourages quality
services and customer satisfaction.
We also invested in a development

program that highlights four key
management skills: Leadership, Corporate
Culture & Knowledge, Communication,
and Individual Effectiveness. We remain
committed to further enhancing our
inherent strengths from within to face
external challenges and ensure that our
talents grow together with our business.
We likewise established the Petron

Recreational Club as a way to promote
work-life balance and infuse teamwork
among our employees. With many
talents of different backgrounds, we
induced more success through greater
collaboration outside the workplace.
In line with governments mandate for cleaner fuels, we

completed the upgrading of all our terminals under the Petron
Malaysia Group to supply B7 biodiesel to motorists.
All our achievements would
have not been possible without
PDR is on target with its compliance to the governments the dedication, commitment,
mandate to supply Euro 4M Blaze 97RON fuel by September and hard work of our biggest
2015. Euro 4M-standard fuels are more environment-friendly assets Petron employees.
because they emit less emissions, particularly sulfur and
benzene.
We also rolled out 109 new hauling trucks, all carrying the
Petron logo.
Fueling success
All our achievements would have not been possible without the
dedication, commitment, and hard work of our biggest assets
Petron employees.
Banking on our peoples strengths, we invested in programs

to enrich the skills and talents of our workforce. We initiated
the Total Quality Management system (TQM), an organisation-
wide program to further improve competitiveness and reinforce
the Companys core values of customer focus, innovation,
teamwork and excellence. Through TQM, we can focus on
Sustainability
report
We at Petron believe that the best way for us to achieve
success is to ensure sustainable growth that benefits all
our stakeholders. To stay focused on this goal, we continue
to evolve our sustainability programs that are anchored on
NOx GTSP
the following pillars: economic performance, environmental
management, safety & security and social responsibility.
Through these, we are able to gauge our impact and further
improve our performance beyond the numbers.
3.4% 1.2%
of nitrogen oxides water consumption
560
service stations
reduced reduced are now
safety hubs
Economic Performance
For PMRMB to consistently deliver robust economic results and
unlock more value for shareholders, we continue to focus on
three key aspects of the business namely:
Sustainable Supply Chain

Excellent Customer Service
Long-Term Business Growth Plans
Under a robust and comprehensive risk-management strategy,

top management is able to assess economic risk and be pro-
active to ensure a sustainable supply chain flexible enough
to adapt to a dynamic business environment. These include
timely and prudent crude oil and product purchases and just-
in-time deliveries. Last year, we stepped up initiatives to
address commodity and foreign exchange risks. These helped
us mitigate the impact of the extraordinary drop in global crude
oil and product prices in 2014.
As mentioned earlier, we have completed our rebranding and

upgrading program in 550 service stations. These stations
serve as touch points for all our customers to experience the
unique Petron experience. This, in turn, further fuels customer
preference and loyalty.
We have put in place business plans that focus on long

term-growth and profitability. Driven by a highly-qualified
and experienced workforce, we will continue to prioritize
investments and programs that would deliver sustainable

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Sustainability report
volume growth and improve efficiencies across our supply We also look for various ways to reduce our carbon footprint
chain. These include our retail expansion, our multi-product through the I am SSHE (Safety, Security, Health, and
pipeline to Klang Valley, additional storage tanks at PDR, Environment) Leader Environment program. Through this
among others. program, employees from selected terminals including Pasir
Gudang, Sepanggar Bay and Tawau participated in tree-
planting activities.
Also, in conjunction with PDRs 50th anniversary, we conducted

a SSHE Week campaign that promoted awareness on
safety, health and environment among the local community.
The campaign also involved a clean-up activity along the
2.5 kilometer stretch of Bagan Pinang beach at Port Dickson,
which was participated by 100 students and our employee
volunteers. The Bagan Pinang Beach, which is located near
our refinery, is one of the countrys best holiday destinations.
By tapping on the youth, we ensure that the next generation is
aware of environmental issues.
To show our commitment on environmental preservation, we

also signed a Memorandum of Understanding with Department
of Environment to jointly promote environmental awareness
through various activities.
Environmental Management: A Brighter

Tomorrow Begins Today
We continue to be vigilant in protecting and preserving the
environment through our internal program, A Brighter Tomorrow
Begins Today. This initiative focuses on the reduction of waste
and emissions at PDR while promoting awareness across the
organization.
In 2014, our water conservation efforts resulted in the reduction

of water consumption by 1.2%. We also reduced our emissions,
particularly Nitrogen Oxides (NOx) by 3.4%.
motorists, especially the younger

generation. Through our Road Safety
Campaign, students from various
universities were given seminars on safe
and responsible road use. The seminars
were supervised by RMP officials and
professional trainers covering practical
lessons on motorcycle handling and
driving ethics. Through this training
program, we have produced 350 Road
Safety Ambassadors.
Student motorists were also educated

on vehicle maintenance which is an
integral component of road safety. As
a partner in the campaign, we gave
participants new safety helmets and
Petron lubricants - Petron Rider 4T
and 2T high-quality motorcycle engine
oils. We also collaborated with higher
institutions to launch these trainings at
Universiti Teknologi Mara and went on
road shows at Universiti of Tun Hussein
Onn and Universiti Sains Malaysia.
Safety & Security: Our core advocacies

Safety and security are among our main advocacies. As a
testament to this, Petron Malaysia facilities at Port Dickson
Refinery, Port Dickson Terminal, Bagan Luar Terminal, Kuantan
Terminal, Tawau Terminal, and Pasir Gudang JV Terminal were
conferred with the Gold Class 1 Award by the Malaysian Society
for Occupational Safety and Health (MSOSH) in recognition of
their occupational safety and health performance. Our KLIA
Aviation Depot was granted with the Gold Class 2 Award.
These awards underscore the fact that our facilities are safe
and environment-friendly.
Meanwhile, in support of the Royal Malaysia Polices (RMP)

United Against Crime campaign, our stations are now
designated safety hubs. Together with RMP, we conducted a
series of trainings to dealers in all states. By the end of 2014,
Petron service stations dealers and staff were trained to provide
initial assistance and care to the public during emergencies.
In 2014, we again partnered with the Malaysia Road Safety

Department to promote road safety. We believe that in order
to make journeys safer, we need to continuously educate

& Marketing Bhd
Through our Vision Petron Art & Painting

Competition, which we first introduced
in 2012, we hope to encourage college
and university students to express their
creativity through art. For the first time
since its inception, Vision Petron was
incorporated as one of the activities in
the countrys biggest art festival, the 5th
1Malaysia Contemporary Art Tourism
Festival (1MCAT). 1MCAT is an initiative
by the Ministry of Tourism and Culture
Malaysia and conducted by the National
Visual Arts Gallery. We were able to
get more than 300 entries from aspiring
Malaysian artists.
Social responsibility: Playing a role in

nation-building
Malaysia is a dynamic country in a fast developing region and
Petron Malaysia is committed to contribute to the countrys
development, particularly its Vision 2020 goal.
For instance, we have been a staunch supporter of the Human

Capital Awards of Distinction 2014 (previously known as Negeri
Sembilan Schools Sports Award). Working closely with the
State Education Department and the State Government of
Negeri Sembilan, we help encourage and inspire our future
leaders to excel in academics, sports, and the arts.
Meanwhile, through Petron Cares, we responded to the flooding Through our sustainable business practices, we hope to become
in Sabah in October, where our employees joined volunteers to a much stronger, more responsible company that drives change,
clean up two schools in Penampang and Kota Belud, Sabah. We deliver value to our multiple stakeholders and build better lives.
also launched a Petron Flood Donation Drive in December to
help flood victims in the east coast. Our employees and service
station dealers volunteered to distribute relief goods, covering
the hardest hit areas in Kuala Krai, Gua Musang and Pasir Mas
in Kelantan, and Jerantut and Temerloh, in Pahang. Petron also
contributed RM50,000 worth of school uniforms and materials
for children, and RM100,000 worth of fuels for humanitarian
relief missions. Esso and Mobil as well as Smiles Loyalty Card brands are propriety to
ExxonMobil Corporation

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Five-Year
Summary Charts
Revenues Profit/(loss) after tax
(Net of government duties) RM Million
RM Million
11,476 11,128 269
12,000 11,241 300
10,901
8,402 153
10,000 200
98
8,000 100
(64) (64)
6,000 0
4,000 -100
2,000 -200
0 -300
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
Sales volume Total throughput

Thousands of barrels Thousands of barrels
per calendar day per calendar day
120 120
100 100
79 82 80 79 80
80 80
45 49 48 51 46
60 60
40 40
20 20
0 0
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
Capital Expenditure Total assets employed

RM Million RM Million
Financed by
152 2,775 2,792
180 3,000
2,530 2,443
150 2,500
2,094
102
98
120 2,000
90 1,500
55 39
60 1,000
30 500
0 0
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
Shareholdersfunds Trade payables

Notes payable and Taxes payable,
bank borrowing provisions, and others
2014
Highlights
2014 2013 %
FINANCIAL HIGHLIGHTS
RM Million RM Million Change
Revenues 10,901 11,128 (2)

Loss after tax (64) (64) -
Loss per ordinary share unit (sen) (23.9) (23.8) -
Dividend per ordinary share unit (sen) - 14 (100)
Total assets employed 2,443 2,792 (12)
Total shareholders funds 760 862 (12)
Sales volume (thousands barrels per calendar day) 80 79 1
SHAREHOLDERS INFORMATION 2010 2011 2012 2013 2014
Earnings/(loss) per ordinary share unit (sen) 99.5 56.8 36.4 (23.8) (23.9)
Dividend per ordinary share unit (sen) 14 14 14 14 -
Dividend yield (%) 5.3 3.6 4.3 4.5 N/A
Share price (RM) - Highest 3.03 5.97 3.94 3.60 3.21
- Lowest 2.42 2.73 2.71 2.76 2.30
- Average 2.64 3.92 3.26 3.11 2.90
Number of employees at year-end 290 261 283 293 292

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Board of
Directors
STANDING FROM LEFT TO RIGHT
1. Y. Bhg. Tan Sri Abdul Halim Ali 3. Ms. Chua See Hua 5. Mr. Ramon S. Ang 7. Y. Bhg. Dato Zuraidah Atan
Independent Director Independent Director Chairman Independent Director
2. Mr. Ferdinand K. Constantino 4. Mr. Lubin B. Nepomuceno 6. Ms. Aurora T. Calderon 8. Y. Bhg. Dato Zainal
Executive Director Executive Director/ Executive Director Abidin Putih
Chief Executive Officer Independent Director
Board of directors

& Marketing Bhd
Profile of
Directors
Ramon S. Ang Aurora T. Calderon
Chairman Executive Director
Mr. Ramon S. Ang, aged 61, a citizen of the Republic of the Philippines, Ms. Aurora T. Calderon, aged 60, a citizen of the Republic of
was appointed as a Director on March 30, 2012 and appointed as the Philippines, was appointed to the Board of the Company on
Chairman/Chief Executive Officer of the Company on April 2, 2012. March 30, 2012. Ms. Calderon has served as a Director of Petron
On November 20, 2013, Mr. Ang relinquished the position of Chief Corporation since August 13, 2010. She also sits on the Board of
Executive Officer in adherence to the Malaysian Code on Corporate Directors of several Petron Corporation subsidiaries including Petron Oil
Governance 2012. Mr. Ang has served as the Chief Executive & Gas International Sdn Bhd. Ms. Calderon is also Senior Vice President
Officer and Director of Petron Corporation in the Philippines since and Senior Executive Assistant to the President and Chief Operating
January 8, 2009 and the President of Petron Corporation since Officer of San Miguel Corporation and sits on the Board of Directors of
February 10, 2015. Mr. Ang is also the Chairman of a number of San Miguel Corporation and several of its subsidiaries including SMC
Petron Corporations subsidiaries including its Malaysian subsidiaries, Global Power Holdings Corporation. She has served as a Director of
Petron Oil & Gas International Sdn Bhd, Petron Fuel International Manila Electric Company (from January 2009-May 2009), Senior Vice
Sdn Bhd and Petron Oil (M) Sdn Bhd. Mr. Ang is also Vice Chairman President of Guoco Holdings (1994-1998), Chief Financial Officer and
and President and Chief Operating Officer of Petron Corporations Assistant to the President of PICOP Resources (1990-1998) and Assistant
parent company, San Miguel Corporation, and is on the Board to the President and Strategic Planning at the Elizalde Group (1981-1989).
of Directors of a number of its subsidiaries including San Miguel A certified public accountant, she graduated magna cum laude from the
Pure Foods Company Inc. and SMC Global Power Holdings Corp. University of the East in 1973 with a degree in Business Administration,
Mr. Ang is also a Chairman of Eastern Telecommunications Philippines majoring in Accounting. She earned her Masters degree in Business
Inc. and Liberty Telecoms Holdings, Inc. Mr. Ang holds a Bachelor Administration from the Ateneo de Manila University in 1980.
of Science degree in Mechanical Engineering from the Far Eastern
University, Philippines.
Lubin B. Nepomuceno
Executive Director and Chief Executive Officer
Ferdinand K. Constantino
Executive Director Mr. Lubin B. Nepomuceno, aged 63, a citizen of the Republic of
the Philippines, was appointed to the Board of the Company on
Mr. Ferdinand K. Constantino, aged 62, a citizen of the Republic of March 30, 2012. On November 20, 2013, Mr. Nepomuceno was
the Philippines, was appointed to the Board on August 30, 2013. also appointed as the Chief Executive Officer, when the offices
Mr. Constantino has served as a Director of San Miguel Corporation of Chairman and Chief Executive Officer were separated in line
since May 31, 2010. He is the Chief Finance Officer, Senior Vice with the recommendations of the Malaysian Code on Corporate
President, Treasurer, Corporate Information Officer San Miguel Governance 2012. Effective February 10, 2015, he was appointed as
Corporation. He is also the President of Anchor Insurance Brokerage General Manager of Petron Corporation. He is also a Director of a
Corporation and is a Director of San Miguel Yamamura Packaging number of Petron Corporations subsidiaries including its Malaysian
Corporation, Top Frontier Investment Holdings Inc., San Miguel Foods subsidiaries, Petron Fuel International Sdn Bhd and Petron Oil (M)
Inc., Citra Metro Manila Tollways Corporation and Northern Cement Sdn Bhd. He is also the President of Petron Marketing Corporation.
Corporation. He is the Director and Vice Chairman of SMC Global Mr. Nepomuceno is a Director of San Miguel Corporation subsidiaries,
Power Holdings Corp. Mr. Constantino previously served San Miguel San Miguel Paper Packaging Corporation and Mindanao Corrugated
Corporation as Director of San Miguel Pure Foods Company Inc. Fibreboard Inc. Mr. Nepomuceno holds a Bachelor of Science
(2008-2009) and San Miguel Properties Inc. (2001-2009) and as Chief degree in Chemical Engineering and a Masters degree in Business
Finance Officer of Manila Electric Company (2009). Mr. Constantino Administration from the De La Salle University. He has also attended
obtained a Bachelor of Arts in Economics from University of the Advanced Management Programmes at the University of Hawaii,
Philippines in 1972. University of Pennsylvania and with Japans Sakura Bank.
Profile of directors
Y. Bhg. Dato Zainal Abidin Putih Y. Bhg. Tan Sri Abdul Halim Ali
Independent Director and Chairman of the Board Audit & Independent Director and Member of the Board Audit &
Risk Management Committee Risk Management Committee
Member of the Nominating Committee Member of the Nominating Committee
Y. Bhg. Dato Zainal Abidin Putih, aged 69, a Malaysian, was appointed Y. Bhg. Tan Sri Abdul Halim Ali, aged 71, a Malaysian, was appointed
Director of the Company on March 6, 2003. Upon qualifying from the Director of the Company on May 22, 2001. Upon graduation from
Institute of Chartered Accountants in England and Wales, he joined the University of Malaya, he joined the Ministry of Foreign Affairs in 1966.
firm of Hanafiah Raslan & Mohamad, which merged with Ernst & Young in After several domestic and foreign postings, he was appointed the
July 2002. He has extensive experience in audit, having worked as a Malaysian Deputy Permanent Representative to the United Nations in
practicing accountant throughout his career covering many principal 1979. He was appointed Ambassador to Vietnam in 1982 and returned
industries including banks, insurance, energy, transport, manufacturing, to Malaysia in 1985 to be Deputy Secretary General in the Ministry
government agencies, plantations, properties, hotels, investment of Foreign Affairs before being appointed Ambassador to Austria. In
companies and unit trusts. He also has a good working knowledge of 1991, he again returned to Malaysia to be Deputy Secretary General
taxation matters and management consultancy, especially in the areas of I in the Ministry of Foreign Affairs and in 1996, he was promoted to
acquisitions, takeovers, amalgamations, restructuring and public listing of Secretary General. In July 1998, he was appointed Chief Secretary to
companies. He plays an active role in the community and the corporate the Government, the highest ranking civil service post in the country
world being a Past President of the Malaysian Institute of Certified Public and was responsible for overseeing and coordinating the policies of
Accountants. He was also a member of the Malaysian Communication & the government and their implementation. He retired as Chief Secretary
Multimedia Commission, a body set up by the Malaysian government to to the Government in March 2001. He currently is the Chairman of
oversee the orderly development of the multimedia and telecommunication the Multimedia Development Corporation, Malaysia Building Society
industry in Malaysia. He was the Chairman of Pengurusan Danaharta Berhad and IJM Corporation Berhad. Tan Sri Abdul Halim Ali holds a
Nasional Berhad as well as the Malaysian Accounting Standards Board Bachelor of Arts degree from University of Malaya.
(MASB). He is currently the Chairman of Dutch Lady Milk Industries
Berhad and Land & General Berhad. He is a Director of the CIMB Group
and is also the Chairman of CIMB Bank Berhad and a Director of CIMB Y. Bhg. Dato Zuraidah Atan
Investment Bank Berhad. Dato Zainal further serves as a Director of Independent Director, Member of the Audit &
Tenaga Nasional Berhad and also acts as a Trustee of the National Risk Management Committee
Heart Institute Foundation. Dato Zainal Abidin Putih is a Fellow of the
Institute of Chartered Accountants in England and Wales and is also a Y. Bhg. Dato Zuraidah Atan, aged 56, a Malaysian, was appointed a
Certified Public Accountant. Director of the Company on February 20, 2014. She is an advocate and
solicitor in her own law firm, Chambers of Zuraidah Atan which was
established in 2004.Dato Zuraidah is also the Chairman of the Students
Ms. Chua See Hua Volunteer Foundation, a foundation developed by the government to
Independent Director, Member of the Audit & Risk Management Committee foster and cultivate the spirit of volunteerism among the students of
Chairman of the Nominating Committee higher education institutions. She is a member of the Universiti Sains
Malaysia (USM) Board of Governors. She also served as an Honorary
Ms. Chua, aged 61, a Malaysian, was appointed a Director of the Advisor to the oldest non-governmental organisation related to cancer
Company on May 31, 2013. She is an Advocate and Solicitor of the in the country, the National Cancer Society of Malaysia. She has more
High Court of Malaya, as well as in England and Wales, Hong Kong than 25 years of experience in the banking industry and has been
and Singapore. Ms. Chua is the founding partner of Chua Associates, involved in numerous investment projects and corporate advisory. She
Advocates and Solicitors; a niche firm she set up in 2010 specializing is a Non-Independent/Non-Executive Director on the Board of NCB
in corporate, commercial, real estate, finance and capital markets Holdings Bhd (and its subsidiary Northport Bhd) and is an Independent
laws. Prior to that Ms. Chua was in legal practice since 1985 with a Director on the Board of Kenanga Islamic Investors Berhad. Dato
number of leading firms including Skrine & Co (1985-1989) and as Partner Zuraidah is Director on the Board of Bursa Malaysia Berhad. She is also
of Raslan Loong (1997-2010). She was also the General Counsel for a Non-Executive Director of SP Setia Berhad. She is a member of the
Ernst & Young in Hong Kong and at the international law firm of Consultation and Corruption Prevention Panel of the Malaysian Anti-
Simmons & Simmons in Hong Kong (collectively from 1989-1997). Corruption Commission.Dato Zuraidah Atan is a holder of Bachelor of
Ms. Chua graduated with an LL.B from the University of East London, Laws (Honours) degree from the University of Buckingham, England and
United Kingdom. She also completed her Masters in Law at the a former student of Tunku Kurshiah College.
University of Cambridge specializing in companies & securities laws
and international law.

& Marketing Bhd
Corporate
Information
PETRON MALAYSIA REFINING
& MARKETING BHD (Company No.: 3927-V)
Directors Company Secretary Solicitors
Mr. Ramon S. Ang Mr. Manoj Devadasan Messrs Raja, Darryl & Loh, Kuala Lumpur
Chairman
(LS0006885) Messrs Zain & Co, Kuala Lumpur
Messrs Lee Hishamuddin Allen & Gledhill
Y. Bhg. Tan Sri Abdul Halim Ali Share Registrar Messrs Azman, Davidson & Co,
Independent Director Kuala Lumpur
Tricor Investor Services Sdn Bhd (118401-V)
Y. Bhg. Dato Zainal Abidin Putih Level 17, The Gardens North Tower
Mid Valley City Registered Office
Independent Director
Lingkaran Syed Putra Office of the Secretary,
Ms. Chua See Hua 59200 Kuala Lumpur Petron Malaysia Refining & Marketing Bhd
Independent Director Tel : +603-22643883 Level 12A, Menara I&P 1,
Fax : +603-22821886 No. 46 Jalan Dungun,
Y. Bhg Dato Zuraidah Atan Damansara Heights,
Independent Director Auditors 50490 Kuala Lumpur
Tel : +603-20828400
Ms. Aurora T. Calderon KPMG (No. AF 0758) Fax : +603-20828578
Executive Director Chartered Accountants
Petaling Jaya
Mr. Ferdinand K. Constantino
Executive Director Stock Exchange Listing
Mr. Lubin B. Nepomuceno Main Board of Bursa Malaysia
Executive Director, Chief Executive Officer Securities Berhad
Stock code: 3042
(Syariah-compliant securities)
Corporate
Governance
The Board of Directors is committed to Dato Dr. Syed Jalaludin Syed Salim on Board Leadership and Responsibility in
ensuring that the highest standards of June 5, 2014, the Board had four (4) Discharging Fiduciary and Leadership
corporate governance are practised Independent Directors. Each Independent Functions
throughout the Company. The Board Director brings invaluable judgment to
views this as a fundamental part of its bear on issues of strategy, performance, The Board (except for matters requiring
responsibilities to protect and enhance resource allocation, risk management, shareholders approval) is the ultimate
shareholder value. Accordingly, the and standards of conduct. The role and authority of the Company and is tasked
Board fully supports the principles laid authority level of the Chief Executive with the review and approval of all
out in the Malaysian Code on Corporate Ofcer (CEO) is also stated in a business plans and strategic initiatives
Governance 2012 (2012 Code). The Petron Corporation-based General (both short and long term) with specied
following is a review of how the Resolution (on company-wide powers goals that are to be achieved by the
Company complies with the various and relevant delegation of authority) Management in the implementation of
recommendations of the 2012 Code. that spells out the CEOs day to day these plans and initiatives. Management
management responsibilities and reviews all such matters with the Board
The Corporate Governance Report decision making powers. The Board Audit & Risk Management Committee,
covers the financial year of 2014. The for purposes of assisting the CEO in comprised solely of Independent
Company has incorporated best the day to day operational matters has Directors, and the Board. By engaging
practices from parent company Petron also set up a Management Committee the Independent Directors, the
Corporations own governance culture headed by an Executive Director of the Management is able to elicit their
and formulated the Companys own Company and comprises the Heads of views, and benet from the Independent
corporate governance policies and key Departments in the Company. The Directors vast experience and expertise
guidelines (called the standards of Management Committee meets weekly. in various elds of business including
business conduct or Code of Conduct) The current Management Committee that of the Company. The review with
based on the Companys needs. The was formed by the Board on April 2, the Independent Directors also enables
following is a summary of the Companys 2012 following the take-over by Petron the Company to manage Minority
compliance with the 2012 Code. Corporation in 2012. The Board regularly Shareholders expectations that their
reviews the necessary delegation of rights continue to be protected.
authority in the Company on various
PRINCIPLE 1 functions including the formulation and The Board recognizes that the business
designation of authorized signatories of the Company is one that has a
Functions of the Board and Delegation with respect to various business and moderate to high level of risk in terms of
to Management functional matters based on the value business, nancial, economic outlook,
of any given transaction. Controls are environmental, safety and community/
The Board leads and controls the also incorporated to ensure that each social risks. These are at all times kept
Company. The Board meets at least four approval goes through a strict process in mind in planning and executing any
times a year, with additional matters and various levels of independent venture that is to be undertaken. The
resolved by way of circular resolutions cold eye reviews prior to approval thus Board nevertheless acknowledges that
as and when required. Special preventing any abuse of authority and it is there to manage a business, and risk
meetings of the Board may be called ensuring thorough review prior to any (as in all businesses) is an inherent part
when necessary. In 2014, following decision being taken. of the business. The Board recognizes
the retirement of Y. Bhg. Tan Sri that identifying and adopting solutions
to manage those risks is imperative

& Marketing Bhd
Corporate Governance
in business and nding a successful There is a clear framework in place standard terms in such contracts thus
balance between managing risks and for the reporting on internal controls ensuring the Code of Conduct is at all
promoting the business objectives of the and compliance. The Management times adhered to without compromise.
Company is a consideration the Board Committee meets weekly to review all Effective 2015, all employees are to
fully recognizes as necessary for its matters in the preceding week and plan provide annual written confirmation
sustainability which the Board (and the for work for the future. This allows the of their understanding of the Code of
Companys Management) prides itself in members of the Management Committee Conduct and declare their compliance
being able to achieve. to review all issues pertaining to with the same.
compliance, not only of laws including
The Company has written guidelines MMLR, but also compliance with the The management systems that are in
on shareholder communication that Companys policies on expected conduct place are designed to achieve high
are incorporated in the Companys by the Company and its employees. Any standards of performance in the areas
Corporate Communication and issue of non-compliance is referred to of safety, operations integrity, internal
Disclosure Guidelines that can be the Companys independent Internal control, and legal and environmental
accessed on the Companys website Audit Group for review and investigation compliance. As these systems have
www.petron.com.my. The guidelines also and, where recommended, necessary been previously adopted by the Board
incorporate the parent companys best action. The review will also highlight and were used by the Company for
practices. The Board and Management process gaps that have to be corrected many years, upon the take-over of the
recognize the need to communicate to ensure such non-compliance does Company by Petron Corporation in
effectively with shareholders. The not recur. The Company also has an 2012, these management systems were
Board values and encourages dialogue established whistle-blower protection deemed to continue in operation and
with the shareholders to establish system in place to safeguard employees employees, contractors and vendors
better understanding of the Companys from any recriminations for highlighting by contract and training, continue to
objectives and performance. To this end, any non-compliance by any employee. be guided by these same systems until
suggestions made by shareholders have such time these systems are amended.
been incorporated, where appropriate, Code of Conduct and Management As the systems involve employees,
including the improvement of nancial Systems contractors and vendors whose
presentations at general meetings as engagement spanned the take-over, it
well as enabling shareholders to visit The Company has a written Code of was recognized that a sudden change
the ofce for dialogues or clarication Conduct in place that can be accessed in the systems (and providing fresh
on matters disclosed or pertaining on the Companys website. The Code training to the employees, contractors
to the Company. The Annual General of Conduct contains policies and and vendors) would cause undue
Meeting provides a suitable forum for systems designed to create and strain on the Companys resources. In
the shareholders to hold dialogues with support a strong system of corporate this regard, the Company has opted to
the Board. Additionally, queries from governance. The Code of Conduct has gradually change the systems (where
investors and potential investors are been communicated to the Companys necessary) by introducing new or
dealt with by our Investor Relations. The employees, contractors and vendors, revised set of management systems to
Companys website has a Management so that they have a clear understanding govern the Company that are in line with
Committee Member as its named of the Companys expectations. These the policies and systems of the parent
contact person with contact details, include policies on business ethics, company, Petron Corporation. However,
to ensure shareholders queries are conicts of interest, alcohol and drug changes to the current policies and
promptly addressed. The Company use, gifts and entertainment, harassment systems are expected to be minimal.
holds open discussions with investors in the workplace and employees outside
and analysts upon request. Needless directorships. Periodic training is also The Board and the Board Audit & Risk
to say, material information relating to carried out for employees, contractors Management Committee with the
the Company is disclosed to the public and vendors to ensure understanding of assistance of an independent Internal
by way of announcements to Bursa the requirements. Standard contracts Audit Group, help ensure that the
Malaysia Securities Berhad (BMSB), of the Company (including employment policies and the management systems
as required by the Main Market Listing contracts and contracts with third party are fully implemented and consistently
Requirements of BMSB (MMLR). vendors/contractors), also incorporate enforced.
key provisions of the Code of Conduct as
Sustainability the Companys website. The Company Sri Abdul Halim Ali, or any of the other
further has a comprehensive Vision/ Independent Directors, should there be
Petron Corporations investment in the Mission/Values statement. The Vision/ any concerns relating to the Company
Company (including its sister companies, Mission/Values Statement also contains and its Management.
Petron Fuel International Sdn Bhd and all elements of sustainability that the
Petron Oil (M) Sdn Bhd) when it acquired Company embraces. The Vision and Supply of Information to the Board
ExxonMobils interests in 2012, was a Mission Statement can be viewed on
major investment by Petron Corporation the inner cover of this report. Information regarding the Companys
in Malaysia. This investment was business and affairs are normally
driven by a belief in the future of the The Board provided to the Board by the Companys
downstream oil and gas business, the Management and staff. Towards
Malaysian economic growth prospects The Board leads and controls the meeting this objective, Board meetings
and a desire to benet from regional Company. The Board meets at least are structured with a pre-determined
business opportunities. The Board takes four times a year, with additional agenda. Board and Committee papers
full cognizance that this investment matters resolved by way of Circular covering the Companys operational
by Petron Corporation is for the long Resolutions as and when required. and nancial performance, strategic
term. The sustainability and continued Special meetings of the Board may be plans on any signicant matters and
sustainability of the business is key to called when necessary. The Board has developments, together with the
ensuring all shareholders who have put eight members (as at the end of 2014), minutes of the previous Board and Board
their faith in the Company through their with four Independent Directors and Audit & Risk Management Committee
investment, and other stakeholders four Executive Directors (including meetings, are circulated to the Directors
namely, the community in which we the Chairman). Together, the Directors (or Members of the Board Audit & Risk
operate and society in general, benet form the mind and management of the Management Committee, as the case
from the Companys presence and Company. Each Independent Director may be) in advance of each meeting.
growth. To this end, the Company is fully brings invaluable judgment and skills to This allows the Directors time to study
committed to ensuring its products meet bear on issues of strategy, performance, and deliberate on the issues to be raised
the highest standards in terms of safety resource allocation, risk management and discussed at each meeting.
and environment. The Company is also and standards of conduct.
committed to meeting the Governments Access to the Services of a Competent
call to introduce cleaner and environment Balance in the Board is achieved and Company Secretary
friendly Euro-5 compliant fuels. maintained with the composition of both
Executive and Independent Directors. The Board, in addition, has full access to
The Company also has a policy of In recognition that the Independent the services and advice of the Company
Malaysians First when engaging Directors have a primary role in Secretary. The Company Secretary, who
employees. To date, the Company and providing unbiased and independent is also the General Counsel of the group
its sister companies have hired over views, the Company has selectively of Petron companies in Malaysia and a
200 Malaysian employees to ll job appointed highly qualied individuals member of the Management Committee,
vacancies created since the take-over of integrity and character, with broad has over 25 years of experience in legal
by Petron in 2012. These Malaysian experience and proven business and matters and over 19 years of experience
employees have an opportunity to learn management expertise. as a Company Secretary including that
the business and complex processes pertaining to a public listed company.
in the downstream oil and gas industry With the retirement of Y. Bhg. Tan Sri The Directors also have full access
rst hand and in turn contribute to the Dato Dr. Syed Jalaludin Syed Salim on to such outside advisors, including
long-term development of the Company, June 5, 2014, Y. Bhg. Tan Sri Abdul Halim accountants, legal counsels, and other
economy and society as a whole. Ali is the longest serving Independent experts, as they deem appropriate. The
The Company has a written policy on Director of the Company. Shareholders fees and expenses of any such advisors
sustainability that can be accessed on are at liberty to approach Y. Bhg. Tan will be paid by the Company.

& Marketing Bhd
The Board Charter recommendation of candidates for appointment of Directors to the Board.
appointment as Chief Executive Ofcer, The Nominating Committee recognizes
Whilst the Board when rst formed in Chief Finance Ofcer and Company that diversity on the Board in terms of
1974 had a formal Charter, with time and Secretary. having one-third women directors was a
changes in the nature of the business, the call from the Government, and a noble one
roles and responsibilities and delegation The current members of the Nominating at that, which the Nominating Committee
of authority became more clearly Committee are as follows: will strive to achieve. In 2014, the Board
dened by the General Resolution 1. Ms. Chua See Hua (Independent had three (3) women directors, out of
on the delegation of authority today Director) Chairman of the Committee eight (8) directors; thus complying with
within the Petron Corporation group. 2. Y. Bhg. Tan Sri Abdul Halim Ali the recommendation on gender diversity.
This delegation of authority, as adopted (Independent Director)
by the Board, acts to identify the roles 3. Y. Bhg. Dato Zainal Abidin Putih In accordance with the Companys
and responsibilities of the Board and (Independent Director) Articles of Association, the Board can
Management and the relevant authority appoint any person to be a Director as and
levels at Management. This document The composition of the Nominating when it is deemed necessary. However,
is reviewed periodically by the Board Committee complies with the 2012 Code. consistent with the best practices of the
and updated as necessary. It is also 2012 Code, the Nominating Committee
to be noted that the Board recognizes Role of the Nominating Committee and makes recommendations to the Board
(as mentioned in the 2012 Code) that it Activities in 2014 prior to such appointments. Any person
cannot effectively undertake the day- so appointed shall hold ofce until the
to-day management of the Company. Apart from reviewing and making next Annual General Meeting at which
It thus created the Management recommendations to the Board with time the candidate will be subject
Committee, crafting a charter for the regard to candidates as mentioned to election by the shareholders. An
said Committee that spells out its roles above, the Nominating Committee is also election of Directors takes place every
and responsibilities. Thus, where any act responsible for the annual assessment year, with each Director retiring from
or approval is not stated to be within the of the effectiveness of the individual ofce at least once every three years.
purview of the Management Committee Directors, Board Committees, and the Directors retiring by rotation are eligible
by default it is deemed to be within the overall Board on an on-going basis. These for re-election by the shareholders at
purview of the Board. The Charter of assessments, based on a combination the Annual General Meeting.
the Management Committee can be of qualitative and quantitative factors,
accessed on the Companys website. as determined by the Nominating In 2014, the Nominating Committee
Committee, were carried out by the carried out the following activities:
Nominating Committee for the year.
PRINCIPLE 2 The ndings and results of these Review of candidates proposed for
assessments by the Nominating appointment as Independent Director
Establishment of a Nominating Committee were reported to the Board (Y. Bhg. Dato Zuraidah Atan), and
Committee on February 24, 2015. appointment as Chief Finance Ofcer
(Ms. Myrna C. Geronimo);
The Nominating Committee was The Committee can also direct Review of the Independent Directors
established by the Board of Directors Management to plan induction training having exceeded 9 cumulative years
in 2003 with a written Charter that programs for new Directors (on request) in office and making recommendations
specifies its roles and responsibilities. to familiarize them with the duciary to the Board on their retirement
duties and need for compliance with (Y. Bhg. Tan Sri Abdul Halim Ali) and
The Nominating Committee is securities and corporate laws. retention of another term (Y. Bhg.
responsible for the recommendation Dato Zainal Abidin Putih); and
of candidates for Independent, Non- The Nominating Committee, in To revamp the process for the
Executive and Executive Directors and recommending candidates, places annual review of the performance
the recommendation of Directors for emphasis on recommending the best of the individual Directors, Board
Committees, for the Boards consideration person for the job and for the Company Committees and the Board of
and decision. The Nominating Committee regardless of race, religion, sex or social Directors as a whole.
is also responsible for the review and background. The same applies to the
The Nominating Committee, in reviewing main Board (iv) the Board members skills Key Performance Indicators. This is done
the candidates for appointment set and (v) the Directors performance and as part of the Petron Groups annual
to the Board and as Chief Finance contribution to the Board. employees performance evaluation. The
Ofcer, considered the experience evaluation is done independently of each
of the individuals, their respective The 2014 annual evaluation was completed of the individual Key Executives concerned
qualications for the position, their in January 2015 and a summary of the results and who does not have any role in
integrity and character, level of was presented to the Nominating Committee determining the results of the evaluation,
competence and the time they could and the Board on February 24, 2015. the ranking, the salary increments and
afford to spend in the discharge of their other remuneration, if any.
respective duties. In this regard, the The evaluation in relation to the
Committee also took into account the independence of the Independent Directors Remuneration Committee
needs of the Company going forward indicated that all the Independent Directors
and the value-added benet of having fulfilled all the necessary requirements, The Remuneration Committee was in
some of the senior most directors under the Listing Requirements, of place in the first half of 2014 and was
and ofcers of the parent company to independence. Two (2) of the Independent comprised of:
steward the Company. Directors namely Tan Sri Abdul Halim Ali and 1. Mr. Lubin B. Nepomuceno (Executive
Dato Zainal Abidin Putih have exceeded Director/CEO) Chairman of the
For the Annual Review, the Committee the recommended nine (9) cumulative Committee
considered amongst others, the roles years in office but their continued presence 2. Ms. Aurora T. Calderon (Executive
played by Directors (individually and as on the Board, approved at the preceding Director) Alternate Chairman of the
a group) during the year. The Committee Annual General Meeting, also fulfils the Committee
also considered their role in charting necessary requirements as recommended 3. Y. Bhg. Tan Sri Dato Dr. Syed Jalaludin
the course for the Company and setting by the 2012 Code. Syed Salim (Independent Director)
out the strategic plans for the Company 4. Y. Bhg. Dato Zainal Abidin Putih
and stewarding the implementation The Board was satisfied with the results (Independent Director)
process. The Committee also reviewed of the other evaluation, which showed
other matters such as trainings attended, the Directors, the Committees and the The Executive Directors of the Company
attendance record at meetings (including Board having achieved overall ratings of who are all senior Directors or ofcers of
their respective participation) as well Consistently Good, and noting that the Petron Corporation or its parent company,
as their level of compliance with legal Board composition has the right mix of do not receive any salary or allowance
requirements, including the MMLR. skills and experience and has individuals of (Remuneration) from the Company.
integrity. Feedbacks and recommendations Any determination with respect to their
Annual Review of Board/Committees/ received were noted for follow up or further salaries and perquisites are not within
Directors Performance review, periodically, in 2015. the purview of the Company nor the
Remuneration Committee.
A customized evaluation survey as The evaluation results were also used by the
recommended by the Nominating Nominating Committee in considering and Since such Executive Directors (including
Committee and approved by the Board in determining its endorsements in relation to the Chief Executive Officer) do not receive
2014 was implemented for the 2014 annual the re-election of retiring Directors. any Remuneration from the Company,
evaluation. The survey comprises 5 sets the role of the Remuneration Committee
of form of questionnaires required to be The Board also noted that the Chief was reduced to merely recommending
completed by the respective Directors Executive Officer, Chief Finance Officer, the Directors Fees and other allowances
evaluating, by self-assessment and/ Company Secretary and other members of payable to Independent Directors.
or peer-assessment, in relation to (i) the Management Committee (collectively With the majority of the members on
the independence of the Independent Key Executives) undergo a rigorous the Remuneration Committee being
Director (ii) the performance of the Board annual performance evaluation and Independent Directors, a potential
Committees (iii) the performance of the ranking process based on set goals and conflict of interest situation arose. Thus

& Marketing Bhd
following internal deliberation, and as Putih have each exceeded a tenure of plans to retain one of the Independent
permitted by Recommendation 2.3 of nine (9) years on the Board. The Directors, Y. Bhg. Dato Zainal Abidin
the 2012 Code, the Board at its meeting Company recognizes the rationale for Putih despite their Board tenure having
on August 22, 2014, determined to the imposition of a 9-year-tenure limit exceeded 9 years. Following a review
disband the Remuneration Committee. in the 2012 Code as familiarity with main by the Nominating Committee and its
Effective the same day, as provided for shareholders, executive directors and recommendation, the Board will be
in the 2012 Code, the Board of Directors senior management may, over a long recommending to the shareholders at
assumed the role of the Remuneration duration, impinge upon the Independent the Annual General Meeting in 2015 for
Committee and would manage the role Directors ability to objectively and the re-appointment of Y. Bhg. Dato Zainal
by assuming the charter and procedure independently discharge their roles Abidin Putih as Independent Director for
of the Remuneration Committee. and responsibilities. However, the another year.
Board takes cognizance of the fact that
With that the Board would be reviewing considering the take-over by Petron Chairman and CEO
and making recommendations on the Corporation in 2012, with a new main
Independent Directors Fees for approval shareholder (Petron Corporation), new In line with the recommendation of the
at the Annual General Meeting in 2015. The Executive Directors (nominated by 2012 Code, the office of Chairman of the
Independent Directors during deliberations Petron Corporation) and new Senior Board and Office of the Chief Executive
at the Board Meeting may be asked to Management (appointed by Petron Officer is separated, with Mr. Ramon
provide their views but would otherwise Corporation) in place, the rationale as S. Ang as Chairman and Mr. Lubin B.
abstain from any other discussion or voting stated in the 2012 Code may be less Nepomuceno being the Chief Executive
regarding such proposal. applicable in the case of the Companys Officer.
said two (2) Independent Directors. The
Company also takes the view that, with Composition of the Board to be a majority
PRINCIPLE 3 Petron Corporation being new to the of Independent Directors if there is no
Malaysian market, the guidance of these separation of Chairman/CEO.
Independence of Directors experienced Independent Directors with
their vast knowledge and understanding With the separation of the offices of
The Independent Directors are not of the Companys business in the past Chairman and CEO, this recommendation
allowed to participate in any executive under ExxonMobil, will benet the from the 2012 Code is not applicable.
functions. To ensure their continued Company and the Executive Directors.
independence, the Independent Directors
are required to provide a declaration to Nevertheless, the Board recognizes PRINCIPLE 4
the Company of the fact. The Directors are the need to have a succession plan for
also reminded to inform the Company of the Independent Directors and in this Time Commitment by Directors
any new directorships offered to them, to regard, the Board determined that a
enable the Company to conduct a review phased succession plan would be in the The Nominating Committee in evaluating
of any potential conict of interest that best interest of the Company. Induction the candidates for Directorship took into
may impact on their independence. The of new Independent Directors, for this account their other various roles and
Independent Directors self-assessment of purpose has commenced. responsibilities and formed the view
continued independence is conducted as that they have the necessary capacity
part of the Annual Review. As part of the succession plan, and time to fulll their obligations and
Y. Bhg. Tan Sri Abdul Halim Ali has discharge their duties effectively as
Tenure of Independent Directors opted to retire from the Board at the Directors. The Board Audit & Risk
conclusion of the Companys Annual Management Committee too has taken
Independent Director, Y. Bhg. Tan Sri General Meeting in 2015 and will not be cognizance of the reporting lines,
Dato Dr. Syed Jalaludin Syed Salim, seeking re-election. reporting structure, reviews conducted,
having served a term exceeding efciency of processes and executive
nine (9) cumulative years, retired on Seeking Shareholders Approval function of the Executive Directors,
June 5, 2014. Current Independent including their interaction with Senior
Directors, Y. Bhg. Tan Sri Abdul Halim The Board recognizes the recommendation Management and formed the view that
Ali and Y. Bhg. Dato Zainal Abidin in the 2012 Code and as the Company the system was sound and effective.
Training and understandable assessment process of review allows the Board

of the Companys nancial position Audit & Risk Management Committee
The Board places great emphasis on and prospects. The Board Audit & to thoroughly review and conrm the
continuing education for Directors. In Risk Management Committee assists accuracy and integrity of the nancial
this regard, the status of each Directors the Board by ensuring the accuracy and statements of the Company that are
continuing education was monitored adequacy of the information announced. prepared and released to the public.
and reviewed by the Board. The Board
had in 2006, adopted the Principles for The Board recognizes the importance Suitability of External Auditors
Training of Directors of the Company of the accuracy of nancial statements
that sets out the philosophies on and released to the public and thus, has no Recognizing the importance of the quality
the type and mode of training that the tolerance for any compromise on the of services needed by a subsidiary
Directors will undertake in each year, integrity of the nancial statements. of Petron Corporation/San Miguel
to help them serve the Board more The Board Audit & Risk Management Corporation, a multi-national group,
effectively. These same Principles Committee is updated every quarter the Company as a matter of principle
continue to be applied by the Board. by the Chief Finance Ofcer and only appoints top-tier international
Senior Management on the Companys rm as external auditor for audit and
All Directors on the Board have received compliance with nancial reporting non-audit services. The Board Audit &
or undergone relevant training in 2014. standards that have been adopted in Risk Management Committee is tasked
A summary of the training programs preparing the nancial statements. with an annual review of the external
attended by the Directors in 2014 are as The review is comprehensive and to auditor (as part of the Annual Audit Plan
set out in pages 40 to 42. aid and enable the Board Audit & Risk review with the external auditor). The
Management Committee to track the key matters for discussion in the Annual
The Company reimburses the Directors nancial performance of the Company, Audit Plan include the independence
for costs incurred in attending continuing the presentation to the Board Audit & and continued independence of the
education programs. Risk Management Committee as a external auditor. A written assurance
general rule follows a set format. of the fact is also obtained from the
The Directors are also briefed on The Board Audit & Risk Management external auditor. Only when the Board
any significant changes in laws and Committee also reviews all aspects of Audit & Risk Management Committee
regulations that are relevant to the the business and each business units is satised will it make the necessary
Companys operations. Directors further performance and resulting contribution recommendations to the Board for the
received training and information about towards the nancial performance of appointment of the external auditor.
new initiatives by the Company, for the Company. By such review, the Board
example the training and information Audit & Risk Management Committee
provided to the Directors on the is apprised of the factors contributing PRINCIPLE 6
new hedging plans, decision-making to the nancial statements and is able
process, hedging tools, and relevant to gauge the accuracy of the nancial Risk Management and Internal
hedging activities of the Company. statements before endorsement of the Controls
same for tabling to the Board.
The Board recognizes that managing
PRINCIPLE 5 The Board Audit & Risk Management a publicly listed downstream oil and
Committee also meets with the external gas company has many challenges
Financial Statements auditor and the internal auditor privately and inherent risks. These risks include
(without Managements presence) to financial, foreign exchange, legal
In announcing the quarterly, semi- have the candid views of the external compliance, crude and product supply,
annual and annual nancial statements and internal auditors on their ndings distribution, environment issues,
to the shareholders and the public, the and to ascertain the level of support industrial requirements, safety and
Board endeavours to present a balanced received from Management. This entire managing the human resources of the

& Marketing Bhd
Company. To this end, the Board had auditors. The results are reviewed In 2014, the Company embarked on a
previously put in place a management with various levels of Management program to revisit its risk management
integrity system that over the years, and any major concerns are raised by employing Petron Corporations
proved to be highly effective. Following to Senior Management and the Enterprise-Wide Risk Management tools.
the take-over by Petron Corporation, Board Audit & Risk Management The exercise pointed out that the key
these management integrity systems Committee; risks previously identified continue to
continue to be adhered to by the be the main risk that must be managed
Company to ensure seamless continuity 4. Key policies covering, among others, even today. The Company, recognizing
of the business and operations. The business ethics, conicts of interest, this is an evolving endeavour, will
Company has since made necessary alcohol and drug use, gifts and embark on an exercise to revisit the
changes as was deemed necessary to entertainment, harassment in the risk management preparations that are
enhance its systems. Recognizing that workplace and employees outside already in place with intent to update
Petron Corporation too is in the same directorships are in place in the the tools, where necessary.
downstream oil and gas business and form of the Code of Conduct. These
the management integrity systems it include requirements to comply with As part of the Risk Management review,
has in place, the Company has opted to all applicable laws and regulations. all Business Continuity Plans of the
adopt, where possible, best practices The revised Code of Conduct has been Company will be periodically reviewed
from Petron Corporations own systems. communicated to employees, vendors to ensure that the business recovery
In this regard, the Company continues and contractors. Effective from year process in the event of an emergency is
to receive technical advice and support 2014, training will also be provided sound and effective.
from its parent company, Petron periodically to employees, vendors and
Corporation via its technical advisers contractors. Employees will further be Key control-related matters introduced
based in Malaysia. The Company also required to conrm annually that they to further enhance the Companys
receives a technical support via formal have read the Code of Conduct and Corporate Governance include:
arrangements with ExxonMobil. understand the requirements;
1. Timely reporting of any changes to
The Board recognizes that risks can be 5. An integrity management system the prevalent delegation of authority
mitigated and even eliminated by having based on Petron Corporations best that has been approved by the Board
in place an effective system on internal practices to assess and sustain the and ensuring that amendments are
controls. Key elements of the Companys effectiveness of the organizations approved by the Board in a timely
internal controls include: system of controls; and fashion so as to not cause any
disruption to the business;
1. The adoption of best practices from 6. The effective lines of communications
Petron Corporation. These not only within the Management with weekly 2. Quarterly notice to all Directors and
assist the Company in identifying the Management meetings where all staff on Insider Trading and risks as
principal risks faced by the Company, matters pertaining to each business well as restrictions on trading in the
but also prescribes the appropriate unit and function are reviewed. This Companys shares during a closed
systems to manage these risks way any controls related issues are period;
that includes the overall control highlighted weekly and the action
framework, the required control plans on any identied gaps are 3. Quarterly reporting to the Board
checks and the required checks on dealt with immediately. Audit & Risk Management
the systems effectiveness; Committee of all Trade Accounts
It should be noted that systems of Receivables that are written off; and
2. A dened organizational structure internal controls and risk management
with clear lines of accountability are designed to manage rather than 4. Full review with the Board Audit &
and delegation of authority; eliminate the risk of failure to achieve Risk Management Committee on a
business objectives, and any system quarterly basis of all inter-company
3. Reviews of the control including can only provide reasonable and not transactions to ensure compliance
internal audits have been performed absolute assurance against material with laws pertaining to Related
periodically and nancial audits are misstatement or loss. Party Transactions.
subject to annual review by external
The Board has received assurance from PRINCIPLE 7 website contains information about
the CEO and CFO that the Companys the Company including its Corporate
risk management and internal control Disclosure Policies Governance, its parent company Petron
system (for nancial year ended 2014 Corporation, media announcements,
and up to the date of this Report) is The Company has a written disclosure stock exchange disclosures, its products
operating adequately and effectively, in policy that is incorporated in the range, dealership opportunities and
all material respects. Companys Corporate Communication employee recruitment. The website also
and Disclosure Guidelines. The contains the name and contact details
Internal Audit Guidelines augment a robust and tested of a Senior Management personnel who
system to ensure strict adherence with will address Investor Relations issues
The internal audit function undertakes necessary disclosures to the public and Shareholders queries. The website
independent, regular and systematic via BMSB. Considering the business is regularly updated with the latest
audit reviews of the Companys system of the Company, the similar nature information. The Corporate Governance
of internal controls. This is to provide of business of its sister companies portion in the website contains
reasonable assurance that such in Malaysia, the nature of Petron information pertinent to shareholders
systems are operating effectively. The Corporations large downstream oil and including the Annual Reports, its
basic framework of the Companys gas business activities and the multi- Vision/Mission/Values Statement, its
system of internal controls is described faceted and wide-ranging businesses Safety/Heath/Environment Policies, the
above. The internal audit process of the ultimate holding company San Code of Conducts, sustainability and
covers the audit of selected units and Miguel Corporation, the Company, as on Corporate Communication and
operations based on risk assessment a matter of strict controls process, Disclosure Guidelines.
and the periodic and annual review with requires all transactions involving the
the Board Audit & Risk Management Company to be reviewed via a lter
Committee of audit results and audit process, commencing with weekly PRINCIPLE 8
plans for the subsequent year. Where Management Meetings and reviews
there are any amendments to the audit with Law, Financial Controllers and Shareholder Participation
plan, such amendments to the plan will Tax. All implications of the transactions
require approval from the Board Audit (including the possibility of any related At the Annual General Meeting, the
& Risk Management Committee. party transactions) are fully explored and Chairman of the Board apprises the
reviewed to ensure strict compliance shareholders of the progress and
The Companys internal audit function with the provisions of applicable laws performance of the Company. A question
is undertaken by an internal audit group (including the Listing Requirements). and answer session is also conducted
based in Manila, at Petron Corporation, The Board does not allow for any to allow shareholders the opportunity to
that also undertakes audit work for all compromise on this. question Management on the Companys
Petron Corporation companies in the business and the proposed resolutions.
region. The internal audit group which The Company also adopts the The Chairman, the Board members,
reports directly to the Companys Board recommended best practice of voluntary Senior Management, external legal
Audit & Risk Management Committee, disclosure of information to keep the counsel and the external auditors are
also takes functional guidance from public fully informed of any matters that available at the Annual General Meeting
Petron Corporations internal audit may have any impact on the market or to respond to questions. The Board
function. This structure allows the share price. values and encourages dialogue with
Company to benet from the application the shareholders to establish better
of Petron Corporations internal audit Use of Information Technology understanding of the Companys objectives
best practices and assures the Company and performance. The Annual General
of internal audit independence. The cost The Company places information about Meeting provides an appropriate forum
incurred for internal audit in 2014 was the Company including all disclosures for the shareholders to hold dialogues with
RM77,000. made to BMSB on its website. The the Board on Company-related matters.

& Marketing Bhd
The Company generally provides a believes that engaging shareholders directly apart from dialogues at general
minimum of one-month notice period for meetings, is an integral part of ensuring sound governance of the Company and helps
General Meetings (except in exceptional stakeholders rationalize and appreciate the needs of the Company and balance that
circumstances) and arranges for the against the wants of the stakeholders.
General Meetings in a convenient and
conducive location to give shareholders
ample notice and to encourage their OTHER INFORMATION RELATING TO CORPORATE GOVERNANCE
attendance. The Board has not formulated
any plans to introduce electronic voting but Directors Attendance at Meetings
will evaluate available systems and make a
decision that will be in the best interest of For the year ended December 31, 2014, four (4) Board and ve (5) Board Audit & Risk
the shareholders attending the meetings Management Committee meetings were held. Details of the Directors attendance at
in the future. The Company however has, these meetings are summarized below:
in collaboration with its share registrar,
implemented the use of some automation Directors Number of Number of Board Audit
in the poll voting process, thus increasing Board Meetings & Risk Management
speed and efciency of the voting process. Committee Meetings
Held Attended Held Attended
Poll Voting
Mr Ramon S. Ang 5 3 Non-Member Non-Member
In line with the 2012 Code, the Board
implemented poll voting as a general Ms. Aurora T. Calderon 5 4 Non-Member Non-Member
process in all General Meetings of the Mr. Lubin B. Nepomuceno 5 5 Non-Member Non-Member
Company. This ensures that the voting Mr. Ferdinand K. Constantino 5 5 Non-Member Non-Member
is representative of shareholding in the Ms. Chua See Hua 5 5 Non-Member Non-Member
Company. The use of automation in the
Y. Bhg. Tan Sri Dato Dr. Syed 3 3 3 3
poll voting process, will allow for faster
Jalaludin Syed Salim+
tabulation and the results that will be
announced to the shareholders by the Y. Bhg. Tan Sri Abdul Halim Ali 5 5 5 5
returning ofcer indicating the number Y. Bhg. Dato Zainal Abidin Putih 5 5 5 4
of votes and the percentage of vote for Y. Bhg. Dato Zuraidah Atan++ 4 4 4 4
and against any proposed resolution.
+
Denotes number of meetings held in the year while in office
Proactive Engagement with ++
Denotes number of meetings held in the year following appointment to the Board
Shareholders
Directors Remuneration
The Company actively encourages
shareholders to engage the An analysis of the aggregate Directors remuneration incurred by the Company for
Management to hold dialogues on any the year ended December 31, 2014 as prescribed under Appendix 9C Part A Item
issues pertaining to the Company and 11(a) of the MMLR is set out below:
provide them with information that
may be disclosed. The Management, Value of
on several occasions has invited Remuneration
shareholders, potential shareholders Fees and Others Total
and fund management companies (RM) (RM) (RM)
(at their request) to attend private
meetings with Management to help Executive - - -
clarify Company-related matters Directors
including those on disclosed nancial
Independent 222,376.00 89,242.03 311,618.03
results, disclosed corporate actions and
Directors
business plans. The Company strongly
An analysis of the number of Directors whose remuneration, incurred by the Material Contracts
Company, falls in successive bands of RM50,000 as prescribed under Appendix 9C
Part A Item 11(b) of the MMLR is set out below: The Company is not and was not a party
to any material contracts involving the
Remuneration Number of Executive Number of Non-Executive Directors interests during the year.
(RM) Directors Directors Further, the Company is not and was not
a party to any material contracts that are
Less than 50,000 - 1 not in its ordinary course of business.
All contracts that are of a related party
50,001 100,000 - 4
nature have been duly disclosed to
BMSB during the year.
The Company has opted not to disclose each Directors remuneration as the Board
considers the information to be sensitive and proprietary.
Non-Audit Fees
Petron Corporation-nominated Executive Directors did not receive any remuneration
No non-audit fees were paid or are
from the Company.
payable to the external auditors, KPMG,
by the Company for the nancial year
Statement of Directors Responsibility for Preparing the Financial Statements
ended December 31, 2014.
The Directors are required by the Companies Act, 1965 and the MMLR to conrm that
Other Information
the nancial statements for each nancial year have been made out in accordance
with the applicable approved accounting standards and that they give a true and
i) Family relationship
fair view of the results of the business and state of affairs of the Company for the
None of the Directors have any
nancial year.
family relationship with any other
Director and/or major shareholder(s)
The Directors have carried out their responsibilities by:
of the Company.
selecting suitable accounting policies and applying them consistently;
ii) Conflicts of interest
making judgments and estimates that are reasonable and prudent;
None of the Directors have any
ensuring that all applicable accounting standards have been adhered to; and
conflicts of interest with the
basing the nancial statements on a going-concern basis, as the Directors have
Company.
a reasonable expectation, after having made due enquiries, that the Company
has adequate resources to continue in operational existence for the foreseeable
iii) Conviction for offences (excluding
future.
traffic offences)
None of the Directors have been
The Directors are responsible for ensuring that the Company keeps such accounting
convicted for any offences within
and other records which will sufciently explain the transactions and give a true and
the past 10 years.
fair view of the nancial position of the Company, enabling the Directors to ensure
that the nancial statements comply with the Companies Act, 1965 and to safeguard
iv) Sanctions and/or penalties
the assets of the Company.
No sanction or penalty has been
imposed on the Company, or the
Relationship with Auditors
Directors or the Management, by
the relevant regulatory bodies.
The Board has established a formal and transparent relationship with the auditors of
the Company. The role of the Board Audit & Risk Management Committee in relation
This Statement is made in accordance
to the internal and external auditors is described on pages 43 to 45.
with the Board of Directors resolution
dated February 24, 2015.

& Marketing Bhd
Trainings Attended by Directors
Directors/Training Date in 2014 Organizer
Mr. Ramon S. Ang

Corporate Governance Seminar Nov 6 Risk, Opportunities, Assessment and
Management (ROAM), Inc.
Ms. Aurora T. Calderon

Corporate Governance Seminar Sep 19 SGV & Co.

2015 ASEAN Integration Forum May 13 ASEAN
ASEAN Finance Ministers Investors Seminar May 20 ASEAN
UA & P Economic Briefing Jun 30 University of Asia and the Pacific,
Philippines
Deloitte : CFO Workshop Jul 11 Deloitte
CSR Expo : Commit, Strengthen, Rebuild Jul 24 SMC Foundation Management
Deloitte : CFO Transition Lab Sep 4 Deloitte
Corporate Governance (SGV) Sep 19 SMC
Anti-Money Laundering Act Briefing for BOD and Senior Management Oct 11 Bank of Commerce
FINEX Congress (breakout session: International Financial Reporting Oct 16 FINEX
Standards)
World Law Group Conference on ASEAN Economic Community Oct 16 ASEAN Lawyers
(as panelist)
Mr. Lubin B. Nepomuceno

Corporate Governance Seminar Aug 5 SGV & Co.
Ms. Chua See Hua

Site Visit to Port Dickson Facility Jan 9 Petron Malaysia
Building Asian Futures : Integration, Welfare & Growth? Apr 3 London School of Economics Asia Forum
Crude and Petroleum Commodity Hedging Program Jul 7 Petron Malaysia
Refinery Master Plan Phase 2 (Bataan, Philippines) Aug 22 Petron Corporation
MAICSA Annual Conference
- Challenges of the Changing Corporate & Regulatory Landscape Sep 9 - 10 MAICSA
Executive GST Briefing Sep 10 BDO Malaysia
Environmental Law in a Global Society Oct 9 Sultan Azlan Shah Law Lectures
by Lord Carnwath of Notting Hill
Great companies deserve Great Boards Oct 10 Bursa Board of Directors Series
Boris Johnson, the Mayor of London Dec 2 Khazanah Global Lectures
Does ASEAN Matter by Datuk Dr Rebecca Fatima Sta Maria, Dec 18 MICPA Commemorative Lecture
Secretary General of the Ministry for International Trade and
Industry

Trainings Attended by Directors (Continued)

Y. Bhg. Tan Sri Abdul Halim Ali

Bursatras Half-Day Courses Detecting, Preventing & Reporting Apr 10 Petron Malaysia
Financial Irregularities & Fraud Painful But Necessary
7th Annual Growth, Innovation and Leadership (GIL) Asia Pacific Apr 14 - 15 Multimedia Development Corporation
Summit Sdn Bhd (MDec)
University Leadership Development Workshop Jun 2 - 3 Universiti Teknologi Malaysia
Refinery Master Plan Phase 2 (Bataan, Philippines) Aug 22 Petron Corp
PTD Alumni International Conference 2014 : Transformational Sep 9 - 10 Persatuan Alumni Pegawai Tadbir dan
Leadership in Malaysia Diplomatik
PIKOMs Leadership Summit 2014 Breaching the New Frontiers in Sep 17 Association of the Computer and
the Digital Age Multimedia Industry of Malaysia (PIKOM)
Khazanah Mega Trends Forum 2014 Sep 29 Khazanah Nasional
UUM-Corporate Partnership Forum 2014 Building Quality Talent Oct 1 Universiti Utara Malaysia
Pipeline
ASEAN Corporate Governance Scorecard Workshop Oct 7 MSWG and Bursa Malaysia
National Digital Conference 2014 Continuous Innovation to Achieve Oct 9 Multimedia Development Corporation
People-Oriented Government Services Excellence via Digital Sdn Bhd (MDeC)
Engagement & Public Sharing of Information
Risk Management & Internal Control : An Integrated Assurance Oct 13 Bursa Malaysia
on Risk Management & Internal Control Is Our Line of Defence
Adequate and Effective?
Great Companies Deserve Great Boards by Beverly A. Behan, Oct 17 Malaysian Directors Academy (MINDA)
President, Board Advisor, LLC
Budget Talk 2015 Nov 3 IJM Corporation Berhad
Putrajaya Committee on GLC High Performance Nov 4 The Putrajaya Committee on GLC High
Performance (PCG) Secretariat
Advanced Senior Management Program Seminar by Professor Dec 2 Universiti Teknologi Malaysia
David B. Yoffee, Harvard Business School
Y. Bhg. Dato Zainal Abidin Putih

Land & General Berhad In-House Directors Training Jan 8 Tricor Knowledge House Sdn Bhd
- Companies Bill 2013 by Dr. Cheah Foo Seong; and (half day)
- GST by Mr. Robin Chia
BNM-FIDE FORUM Dialogue with Governor, BNM
- Economic and Financial Services Sector : Trends and Challenges Mar 24 FIDE Forum
Moving Forward

& Marketing Bhd
Trainings Attended by Directors (Continued)
Y. Bhg. Dato Zainal Abidin Putih (continued)

Tenaga Nasional Board Breakout May 9 Tenaga Nasional Berhad
Invest Malaysia 2014 Jun 9 CIMB Group/Bursa Malaysia
MITI & BNM : Engagement Session with Banking Institutions Jun 10 MITI/Bank Negara
CIMB 6 Regional Compliance, Audit and Risk Summit 2014
th
Jun 16 CIMB Group
Dutch Lady Milk Industries Directors Continuing Education Programme 2014 Jun 27 Guiness Anchor Berhad
CIMB Group Risk Posture for 2015
Workshop for Combined Board Risk Committees Jul 24 CIMB Group Dave Thomas, Gp CRO
Board Risk Intelligence Risk Governance into Practice Sep 3 - 4 Asian World Summit Sdn Bhd
Speaker : Dr Frank Ashe
CIMBG GST Awareness Briefing for Board of Directors Sep 8 Ernst & Young Tax Partner
(half day) Mr Bernard Yap
Khazanah Megatrends Forum 2014
Scaling The Efficiency Frontier Sep 29 Khazanah Nasional Berhad
Institutions : Innovation : Inclusion
Australia All Energy 2014 Exhibition & Conference, Melbourne Oct 15 Reed Exhibitions Australia Pty Ltd.,
Melbourne
Y. Bhg. Dato Zuraidah Atan

Managing Stakeholders Expectations in the Fast Changing Business Feb 18 PNB Investment Institute Sdn Bhd (PNBi)
Trends towards Value Creation (by Professor Michael Yazij)
Board Induction Program Mar 14 Bursa Malaysia Berhad
Briefing on Petron Operations in Malaysia Apr 9 Petron Malaysia
2014 Invest Malaysia Kuala Lumpur Jun 9 - 10 Mandarin Oriental Hotel, Kuala Lumpur
Derivatives Trading, Global Trends and Moving Forward Jun 20 Eastern & Oriental Hotel, Penang
1st Annual Gold & Precious Metals Price Outlook Symposium : Jun 28 Istana Hotel
Will Gold Still Glitter in 2014?
Environmental, Social & Governance (ESG) Index Aug 19 Bursa Malaysia
Great Companies Deserve Great Boards and Great Boards Leading the Oct 8 PNB Investment Institute Sdn Bhd
Way for Highly Innovative Companies (by Miss Beverly Behan)
Peeking into the Future Dec 7 Angsana Bintan Hotel, Bintan Resorts,
Indonesia
The Companies Bill : The Significant Changes for Directors Dec 22 PNB Investment Institute Sdn Bhd (PNBi)
BOARD AUDIT &
RISK MANAGEMENT
COMMITTEE REPORT
MEMBERSHIP AND MEETINGS As part of the new Petron-led The Internal Audit Department of
Managements corporate governance Petron Corporation is highly experienced
The Committee comprises three (3) culture, and to ensure that Independent in auditing downstream oil and gas
Independent Directors. The following Directors are fully kept abreast of all business and this enables the internal
are the Committee members: matters pertaining to the Company, the auditors to conduct the audits efciently
1. Y. Bhg. Dato Zainal Abidin Putih Management implemented a process with minimal familiarization and be in a
Chairman of the Board Audit & where if an Independent Director is position to provide management with
Risk Management Committee unable to attend a Committee Meeting, much input process improvements in
2. Y. Bhg. Tan Sri Abdul Halim Ali an advance private meeting, where the Companys systems. The Internal
3. Y. Bhg. Dato Zuraidah Atan; and possible, will be held with said Director Auditors report directly to the Board
4. Ms. Chua See Hua earlier to fully brief him of all matters to Audit & Risk Management Committee.
be tabled before the Committee. The
A detailed prole of the Committee views of that Director are then related Further information about the internal
members can be found on page 27. to the Committee during its Meeting. audit function can be viewed under the
Similarly, where a Circular Resolution of Corporate Governance Statements on
The Secretary to the Committee is the the Committee is moved (due to difculty page 37.
General Counsel/Company Secretary of in arranging a Committee meeting), a
the Company. private meeting will be arranged with
each Independent Director, where TERMS OF REFERENCE OF THE
The Committee had five (5) meetings possible, for a full brieng on the proposal BOARD AUDIT & RISK MANAGEMENT
during the last nancial year. The details prior to obtaining their consent to the COMMITTEE
of attendance of each Committee member Circular Resolution.
have been tabulated under the Corporate Membership
Governance Statements section, which
can be found on page 38. Executive SUMMARY OF ACTIVITIES The Committee members shall:
Directors are encouraged to attend
these meetings to provide guidance to During the last nancial year, the be appointed from members of the
the Board Audit & Risk Management Committee discharged its functions and Board of Directors (the Board);
Committee. However, Management carried out its duties as set out in the consist of not less than three in
Committee Members, in particular the Terms of Reference below. number;
Alternate Chairman of the Management comprise fully Independent Directors;
Committee, the Chief Finance Ofcer and elect a Chairman from among their
the General Counsel/Company Secretary INTERNAL AUDIT number, who is an Independent
regularly attend the Committee meetings Director and has requisite
by invitation to present matters for To ensure independence from the qualications; and
consideration by the Committee and to Companys Management, the Internal not be an alternate Director.
provide answers to queries. In addition to Audit function of the Company is
the Committee meetings, the Committee managed by Petron Corporations Internal
also met privately with the Internal Audit Department. The Internal Auditors
Auditor and External Auditors. report directly to the Board Audit & Risk
Management Committee.

& Marketing Bhd
Board audit & Risk Management committee report
Meetings and Minutes To convene meetings with the To review and report to the Board
external auditors of the Company, the quarterly results and year-end
Meetings of the Committee shall be held without the attendance of the nancial statements, including the
regularly, and as often as necessary. Other executive members of the Committee, balance sheet and prot and loss
Directors of the Company and relevant whenever deemed necessary. statement, prior to submission of the
personnel may only attend the meetings statements to the Board for approval,
at the invitation of the Committee. If Duties focusing particularly on:
required, the presence of the external - changes in existing accounting
auditors at the meetings of the Committee The Committee is charged with the policies or implementation of
may be requested. The auditors, both following duties: new accounting policies;
internal and external, may request the - signicant and unusual events;
Committee to convene a meeting if one is To review, provide recommendations - compliance with accounting
necessary, to consider any matter which and (where necessary) approve risk standards and other legal
any of the auditors believe should be management reviews and findings, requirements; and
brought to the attention of the Directors and to review the mitigation initiatives - the going concern assumption.
and/or shareholders of the Company. implemented by the Company;
To review and report to the Board any
The Secretary to the Committee shall To review with the external related party transaction and conict
be appointed by the Committee. The auditors and internal auditors of of interest situation that may arise
Secretary shall be responsible for the the Company, the audit plan of the within the Company;
timely issuance of meeting notices, Company, the respective auditors
together with meeting agenda and any evaluation of the Companys system To review and report to the Board any
supporting documents in advance of of internal accounting controls removal, resignation, appointment
such meeting, for recording, keeping and and the audit report, the external and audit fee of the Companys
distributing the minutes of meetings and auditors management letter and external auditors;
any other duties ordinarily discharged by managements response to such
a secretary of such Committee. letter, and report the same to To review and report to the Board
the Board; whether there is reason (supported
Authority by grounds) to believe that the
To review and report to the Board the Companys external auditors are not
The Committee is authorized by the assistance given by the Companys suitable for reappointment;
Board: employees to the external auditors
and internal auditors of the Company; To recommend the nomination of
To investigate any matter within its a person or persons as external
terms of reference; To review and report to the Board the auditors of the Company;
adequacy of the scope, functions,
To have the resources which are competency and resources of the To report promptly to Bursa Malaysia
required to perform its duties; internal audit function and that it has Securities Berhad (BMSB) matters
the necessary authority to carry out reported by the Committee to
To have full and unrestricted access its work; the Board which have not been
to any information pertaining to the satisfactorily resolved resulting in a
Company; To review and report to the Board breach of the Main Market Listing
the internal audit programme, Requirements of BMSB; and
To have unrestricted access to and processes, the results of the internal
communication with the external audit programme, or investigation To perform such other functions as
auditors of the Company and internal undertaken, and whether or not may be agreed to by the Committee
auditors; appropriate action has been taken and the Board.
on the recommendations of the
To obtain external legal or other internal audit;
independent professional advice as
necessary; and
Board audit & Risk Management committee report
Risk Management
The Company, following the take-over from ExxonMobil, had maintained the same
risk management evaluations and risk management tools to manage identified risks.
In 2014, the Committee embarked on a review of the Companys risk management in
light of operations under Petron and further to align the Companys risk management
with Petron Corporations Enterprise-Wide Risk Management. The findings in relation
to identified risks remained largely the same, given that the continued nature of the
business of the Company post take-over from ExxonMobil. The identified key risk
areas are:
Key Risk Type of Risk
Price volatility (both crude and - Financial

petroleum products)
Foreign Exchange volatility - Financial
Major incident rendering facilities - Operations/Integrity/Financial
inoperable
Shipping incident/Oil Spill - Operations/Environment/
Reputation
Supply disruption/over dependence - Operations
on few suppliers
Changes in Government policy - Regulatory
Competition - Market environment
Product Quality - Operations/Integrity
Regulatory compliance - Regulatory/Reputation/
Operations
IT Systems/Infrastructure outage - Operations
For each of these identified risks, there are risk management tools and existing
business continuity programs in place. In 2015, as part of the on-going review by the
Committee of the Companys risk management exercise, the Committee would review
the risk management tools employed to mitigate identified key risks.
This Statement is made in accordance with the Board of Directors resolution dated
February 24, 2015.

& Marketing Bhd
financial
statements
47 Directors Report
50 Statement of Financial Position
51 Statement of Profit or Loss and Other Comprehensive Income
52 Statement of Changes in Equity
53 Statement of Cash Flows
55 Notes to the Financial Statements
95 Statement by Directors
96 Statutory Declaration
Directors
Report
for the year ended 31 December 2014
The Directors hereby submit their report and the audited financial statements of the Company for the financial year ended 31 December 2014.
Principal activities
The Company is principally engaged in the manufacturing and marketing of petroleum products in Peninsular Malaysia. There has been no
significant change in the nature of these activities during the financial year.
Results
RM000
Loss for the year 64,478
Reserves and provisions
There were no material transfers to or from reserves and provisions during the financial year under review except as disclosed in the
financial statements.
Dividends
Since the end of the previous financial year, the Company paid a final ordinary dividend of 14 sen totalling RM37,800,000 in respect of the
financial year ended 31 December 2013 on 25 June 2014.
The Directors do not recommend any dividend to be paid for the financial year under review.
Directors of the Company
Directors who served since the date of the last report are:
Y. Bhg. Tan Sri Abdul Halim Ali

Y. Bhg. Dato Zainal Abidin Putih
Y. Bhg. Dato Zuraidah Atan
Y. Bhg. Tan Sri Dato Dr. Syed Jalaludin Syed Salim (resigned with effect from 5 June 2014)
Mr. Ramon S. Ang
Ms. Aurora T. Calderon
Mr. Lubin B. Nepomuceno
Ms. Chua See Hua

& Marketing Bhd
Directors report
Directors interests in shares
The interests and deemed interests in the shares of the Company and of its related corporations of those who were Directors at financial year
end as recorded in the Register of Directors Shareholdings are as follows:
Number of ordinary shares

At 1.1.2014 Acquired Sold At 31.12.2014
Common shares of ultimate holding company (San Miguel Corporation)

Ramon S. Ang 757,873 - - 757,873
Aurora T. Calderon 22,600 - - 22,600
Lubin B. Nepomuceno 7 - - 7
Ferdinand K. Constantino 147,500 - - 147,500
Common shares of intermediate holding company (Petron Corporation)

Ramon S. Ang 1,000 - - 1,000
Aurora T. Calderon 1,000 - - 1,000
Lubin B. Nepomuceno 5,000 - - 5,000
Ferdinand K. Constantino 1,000 - 1,000 -
None of the other Directors holding office at 31 December 2014 had any interest in the shares of the Company and of its related corporations
during the financial year.
Directors benefits
Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive any benefit (other than a
benefit included in the aggregate amount of emoluments received or due and receivable by Directors as shown in the financial statements or
the fixed salary of a full time employee of the Company or of related corporations) by reason of a contract made by the Company or a related
corporation with the Director or with a firm of which the Director is a member, or with a company in which the Director has a substantial
financial interest.
There were no arrangements during and at the end of the financial year which had the object of enabling Directors of the Company to acquire
benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate.
Issue of shares and debentures
There were no changes in the authorised, issued and paid-up capital of the Company during the financial year.
There were no debentures issued during the financial year.
Options granted over unissued shares
No options were granted to any person to take up unissued shares of the Company during the financial year.
Directors report
Other statutory information
Before the financial statements of the Company were made out, the Directors took reasonable steps to ascertain that:
i) all known bad debts have been written off and adequate provision made for doubtful debts, and
ii) any current assets which were unlikely to be realised in the ordinary course of business have been written down to an amount which
they might be expected so to realise.
At the date of this report, the Directors are not aware of any circumstances:
i) that would render the amount written off for bad debts or the amount of the provision for doubtful debts in the Company inadequate to
any substantial extent, or
ii) that would render the value attributed to the current assets in the financial statements of the Company misleading, or
iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Company misleading or
inappropriate, or
iv) not otherwise dealt with in this report or the financial statements that would render any amount stated in the financial statements of the
Company misleading.
At the date of this report, there does not exist:
i) any charge on the assets of the Company that has arisen since the end of the financial year and which secures the liabilities of any other
person, or
ii) any contingent liability in respect of the Company that has arisen since the end of the financial year.
No contingent liability or other liability of the Company has become enforceable, or is likely to become enforceable within the period of
twelve months after the end of the financial year which, in the opinion of the Directors, will or may substantially affect the ability of the
Company to meet its obligations as and when they fall due.
In the opinion of the Directors, the financial performance of the Company for the financial year ended 31 December 2014 have not been
substantially affected by any item, transaction or event of a material and unusual nature nor has any such item, transaction or event occurred
in the interval between the end of that financial year and the date of this report.
Auditors
The auditors, Messrs KPMG, have indicated their willingness to accept re-appointment.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:

Ramon S. Ang Lubin B. Nepomuceno
Chairman Director
Kuala Lumpur
Date: 10 April 2015

& Marketing Bhd
Statement of
financial position
as at 31 December 2014
Note 2014 2013

RM000 RM000
Assets
Cash and cash equivalents 3 354,668 97,593
Derivative financial assets 4 19,507 3,129
Trade and other receivables 5 422,092 809,531
Inventories 6 442,385 694,765
Tax recoverable 32,149 32,581
Total current assets 1,270,801 1,637,599
Property, plant and equipment 7 981,591 945,705

Long-term assets 8 183,767 199,456
Intangible assets - software 9 6,483 9,138
Total non-current assets 1,171,841 1,154,299
Total assets 2,442,642 2,791,898
Liabilities
Loans and borrowings 10 790,000 900,000
Trade and other payables 11 608,168 919,040
Derivative financial liabilities 4 834 4,334
Retirement benefits obligations 12 4,452 4,604
Taxation 400 -
Total current liabilities 1,403,854 1,827,978
Loans and borrowings 10 198,276 -

Retirement benefits obligations 12 42,304 42,000
Deferred tax liabilities 13 38,185 60,129
Total non-current liabilities 278,765 102,129
Total liabilities 1,682,619 1,930,107
Equity
Share capital 135,000 135,000
Reserves 8,000 8,000
Retained earnings 617,023 718,791
Total equity 14 760,023 861,791
Total equity and liabilities 2,442,642 2,791,898
The notes on pages 55 to 93 are an integral part of these financial statements.

Statement of profit or loss and
other comprehensive income
for the year ended 31 December 2014
Note 2014 2013

RM000 RM000
Restated
Revenue 15 10,901,029 11,128,100

Cost of sales (10,771,598) (10,947,771)
Gross profit 129,431 180,329

Other operating income 62,938 76,927
Other operating expenses (197,650) (182,333)
Administrative expenses (17,608) (24,205)
Results from operating activities (22,889) 50,718

Other income 38,348 3,280
Other expenses (29,282) (64,651)
Finance income 16 1,037 1,812
Finance costs 17 (72,986) (66,577)
Loss before tax 18 (85,772) (75,418)

Tax benefits 20 21,294 11,172
Loss for the year (64,478) (64,246)
Other comprehensive income, net of tax
Items that will not be reclassified subsequently to profit or loss

Remeasurement of defined benefit liability 19 510 11,845
Other comprehensive income for the year, net of tax 510 11,845
Total comprehensive expense for the year (63,968) (52,401)
Basic loss per ordinary share (sen) 21 (23.9) (23.8)

& Marketing Bhd
Statement of
changes in equity
For the year ended 31 December 2014
|---------------------Non-Distributable------------------| Distributable
Capital Reserve for
redemption retirement Retained Total
Note Share capital reserves plan earnings equity
RM000 RM000 RM000 RM000 RM000
At 1 January 2013 135,000 8,000 (14,557) 814,099 942,542

Remeasurement of defined benefit liability - - 11,845 - 11,845
Total other comprehensive income
for the year - - 11,845 - 11,845
Loss for the year - - - (64,246) (64,246)
Transfer to retained earning - - 2,712 (2,712) -
Total comprehensive income/(expense)
for the year - - 14,557 (66,958) (52,401)
Contributions by and distributions to
owners of the Company
Dividends to owners of the Company 22 - - - (28,350) (28,350)
Total transactions with owners of
the Company - - - (28,350) (28,350)
At 31 December 2013/1 January 2014 135,000 8,000 - 718,791 861,791

Remeasurement of defined benefit liability - - 510 - 510
Total other comprehensive income
for the year - - 510 - 510
Loss for the year - - - (64,478) (64,478)
Transfer to retained earning - - (510) 510 -
Total comprehensive expense for the year - - - (63,968) (63,968)
Contributions by and distributions to
owners of the Company
Dividends to owners of the Company 22 - - - (37,800) (37,800)
Total transactions with owners of
the Company - - - (37,800) (37,800)
At 31 December 2014 135,000 8,000 - 617,023 760,023

Statement of
cash flows
For the year ended 31 December 2014
Note 2014 2013

RM000 RM000
Restated
Cash flows from operating activities

Loss before tax (85,772) (75,418)
Adjustments for:
Amortisation of intangible assets 9 2,655 2,728
Amortisation of long-term assets 8 20,823 20,347
Depreciation of property, plant and equipment 7 59,830 60,624
Finance costs 17 72,986 66,577
Finance income 16 (1,037) (1,812)
Impairment loss on trade receivables - 105
Intangible asset written off - 444
(Gain)/Loss on disposal of property, plant and equipment (9,834) 34
Property, plant and equipment written off 7 3,628 7,491
Inventories write down 6 27,547 -
Retirement/separation benefits cost 5,173 2,479
Unrealised foreign exchange differences 302 5,767
Other (gain)/loss (18,673) 1,205
Operating profit before changes in working capital 77,628 90,571

Change in inventories 224,833 35,894
Change in long-term assets (797) 1,796
Change in trade and other payables and other financial liabilities (329,822) 93,592
Change in trade and other receivables and other financial assets 390,770 87,475
Cash generated from operations 362,612 309,328

Interest paid (58,532) (49,489)
Interest received 1,037 1,812
Real Property Gain Tax/Income Tax paid (27) (17,827)
Retirement/separation benefits paid (4,302) (4,573)
Net cash from operating activities 300,788 239,251

& Marketing Bhd
Statement of cash flows
Note 2014 2013

RM000 RM000
Restated
Cash flows from investing activities

Acquisition of property, plant and equipment 7 (99,604) (142,708)
Payment for long-term assets 8 (4,337) (9,703)
Proceeds from disposal of property, plant and equipment 10,094 379
Net cash used in investing activities (93,847) (152,032)
Cash flows from financing activities

Proceeds from borrowings 90,000 -
Repayment of borrowings (2,066) -
Dividends paid to owners of the Company 22 (37,800) (28,350)
Net cash from/(used in) financing activities 50,134 (28,350)
Net increase in cash and cash equivalents 257,075 58,869

Cash and cash equivalents at 1 January 97,593 38,724
Cash and cash equivalents at 31 December 3 354,668 97,593

Notes to the
financial statements
Petron Malaysia Refining & Marketing Bhd is a public company, incorporated and domiciled in Malaysia, and is listed on the Main Market
of Bursa Malaysia Securities Berhad. The addresses of the registered office and principal place of business of the Company are as follows:
Registered office/Principal place of business

Level 12A, Menara I & P Tower 1
Jalan Dungun, Damansara Heights
50490 Kuala Lumpur
Principal place of business

Port Dickson Refinery
1 mile, Jalan Pantai
71000 Port Dickson, Negeri Sembilan
The Company is principally engaged in the manufacturing and marketing of petroleum products in Peninsular Malaysia.
The immediate and ultimate holding companies during the financial year were Petron Oil & Gas International Sdn. Bhd. (POGI) and
San Miguel Corporation (SMC). These companies were incorporated in Malaysia and Philippines respectively. The Directors regard
SMC as its ultimate holding company.
The financial statements were authorised for issue by the Board of Directors on 10 April 2015.
1. Basis of preparation
1.1 Statement of compliance
The financial statements of the Company have been prepared in accordance with Malaysian Financial Reporting Standards
(MFRS), International Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia.

The following are accounting standards, amendments and interpretations that have been issued by the Malaysian Accounting
Standards Board (MASB) but have not been adopted by the Company:
MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 July 2014
Amendments to MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards (Annual Improvements 2011-2013 Cycle)
Amendments to MFRS 2, Share-based Payment (Annual Improvements 2010-2012 Cycle)
Amendments to MFRS 3, Business Combinations (Annual Improvements 2010-2012 Cycle and 2011-2013 Cycle)
Amendments to MFRS 8, Operating Segments (Annual Improvements 2010-2012 Cycle)
Amendments to MFRS 13, Fair Value Measurement (Annual Improvements 2010-2012 Cycle and 2011-2013 Cycle)
Amendments to MFRS 116, Property, Plant and Equipment (Annual Improvements 2010-2012 Cycle)
Amendments to MFRS 119, Employee Benefits Defined Benefit Plans: Employee Contributions
Amendments to MFRS 124, Related Party Disclosures (Annual Improvements 2010-2012 Cycle)
Amendments to MFRS 138, Intangible Assets (Annual Improvements 2010-2012 Cycle)
Amendments to MFRS 140, Investment Property (Annual Improvements 2011-2013 Cycle)

& Marketing Bhd
Notes to the financial Statements
1. Basis of preparation (continued)
1.1 Statement of compliance (continued)
MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2016
Amendments to MFRS 5, Non-current Assets Held for Sale and Discontinued Operations (Annual Improvements 2012-2014 Cycle)
Amendments to MFRS 7, Financial Instruments: Disclosures (Annual Improvements 2012-2014 Cycle)
Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in Associates and Joint Ventures
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
Amendments to MFRS 11, Joint Arrangements Accounting for Acquisitions of Interests in Joint Operations
MFRS 14, Regulatory Deferral Accounts
Amendments to MFRS 116, Property, Plant and Equipment and MFRS 138, Intangible Assets Clarification of Acceptable
Methods of Depreciation and Amortisation
Amendments to MFRS 116, Property, Plant and Equipment and MFRS 141, Agriculture Agriculture: Bearer Plants
Amendments to MFRS 119, Employee Benefits (Annual Improvements 2012-2014 Cycle)
Amendments to MFRS 127, Separate Financial Statements Equity Method in Separate Financial Statements
Amendments to MFRS 134, Interim Financial Reporting (Annual Improvements 2012-2014 Cycle)
MFRS 15, Revenue from Contracts with Customers
MFRS 9, Financial Instruments (2014)
The Company plans to apply the abovementioned accounting standards, amendments and interpretations:
from the annual period beginning on 1 January 2015 for those accounting standards, amendments or interpretations that are
effective for annual periods beginning on or after 1 July 2014, except for Amendments to MFRS 1, Amendments to MFRS 2,
Amendments to MFRS 3 and Amendments to MFRS 140, which are not applicable to the Company.
from the annual period beginning on 1 January 2016 for those accounting standards, amendments or interpretations that
are effective for annual periods beginning on or after 1 January 2016, except for Amendments to MFRS 5, Amendments to
MFRS 10 and Amendments to MFRS 128, MFRS 14, Amendments to MFRS 141, Amendments to MFRS 127 and Amendments
to MFRS 134, which are not applicable to the Company.
effective for annual periods beginning on or after 1 January 2017.
effective for annual periods beginning on or after 1 January 2018.
1. Basis of preparation (continued)
1.1 Statement of compliance (continued)
The initial application of the accounting standards, amendments or interpretations are not expected to have any material financial
impacts to the current period and prior period financial statements of the Company except as mentioned below:
(i) MFRS 15, Revenue from Contracts with Customers
MFRS 15 replaces the guidance in MFRS 111, Construction Contracts, MFRS 118, Revenue, IC Interpretation 13, Customer
Loyalty Programmes, IC Interpretation 15, Agreements for Construction of Real Estate, IC Interpretation 18, Transfers of
Assets from Customers and IC Interpretation 131, Revenue - Barter Transactions Involving Advertising Services.
The Company is currently assessing the financial impact that may arise from the adoption of MFRS 15.
(ii) MFRS 9, Financial Instruments
MFRS 9 replaces the guidance in MFRS 139, Financial Instruments: Recognition and Measurement on the classification and
measurement of financial assets and financial liabilities, and on hedge accounting.
The Company is currently assessing the financial impact that may arise from the adoption of MFRS 9.
1.2 Basis of measurement
The financial statements have been prepared on the historical cost basis except as disclosed in Note 2.
1.3 Functional and presentation currency
These financial statements are presented in Ringgit Malaysia (RM), which is the Companys functional currency. All financial
information is presented in RM and has been rounded to the nearest thousand, unless otherwise stated.
1.4 Use of estimates and judgements
The preparation of the financial statements in conformity with MFRSs requires management to make judgements, estimates
and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimates are revised and in any future periods affected.

There are no significant areas of estimation uncertainty and critical judgements in applying accounting policies that have
significant effect on the amounts recognised in the financial statements other than those disclosed in Note 5 impairment of
receivables, Note 12 remeasurement of retirement benefit obligations and Note 13 deferred tax liabilities.

& Marketing Bhd
2. Significant accounting policies
The accounting policies set out below have been applied consistently to the periods presented in these financial statements, unless
otherwise stated.
2.1 Joint arrangements
Joint arrangements are arrangements of which the Company has joint control, established by contracts requiring unanimous
consent for decisions about the activities that significantly affect the arrangements returns.
Joint arrangements are classified and accounted for as follows:
A joint arrangement is classified as joint operation when the Company has rights to the assets and obligations for the
liabilities relating to an arrangement. The Company account for each of its share of the assets, liabilities and transactions,
including its share of those held or incurred jointly with the other investors, in relation to the joint operation.
A joint arrangement is classified as joint venture when the Company has rights only to the net assets of the arrangements.
The Company accounts for its interest in the joint venture using the equity method. Investments in joint venture are measured
in the Companys statement of financial position at cost less any impairment losses, unless the investment is classified as
held for sale or distribution. The cost of investment includes transaction costs.
2.2 Foreign currency transactions
Transactions in foreign currencies are translated to Ringgit Malaysia at exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the end of the reporting period are retranslated to Ringgit
Malaysia at the exchange rate at that date.
Non-monetary assets and liabilities denominated in foreign currencies are not retranslated at the end of the reporting date,
except for those that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that
the fair value was determined.
Foreign currency differences on retranslation are recognised in profit or loss.
2.3 Financial instruments
(i) Initial recognition and measurement
A financial asset or a financial liability is recognised in the statement of financial position when, and only when, the Company
becomes a party to the contractual provisions of the instrument.
A financial instrument is recognised initially, at its fair value plus, in the case of a financial instrument not at fair value
through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial instrument.
(ii) Financial instrument categories and subsequent measurement
The Company categorises financial instruments as follows:
Financial assets
(a) Financial assets at fair value through profit or loss
Fair value through profit or loss category comprises financial assets that are held for trading, including derivatives or
financial assets that are specifically designated into this category upon initial recognition.
Other financial assets categorised as fair value through profit or loss are subsequently measured at their fair values
with the gain or loss recognised in profit or loss.
2. Significant accounting policies (continued)
2.3 Financial instruments (continued)
(ii) Financial instrument categories and subsequent measurement (continued)
Financial assets (continued)
(b) Loans and receivables
Financial assets categorised as loans and receivables are subsequently measured at amortised cost using the
effective interest method.
All financial assets, except for those measured at fair value through profit or loss, are subject to review for impairment
(see Note 2(2.9)(i)).
Financial liabilities
All financial liabilities are subsequently measured at amortised cost other than those categorised as fair value through
profit or loss.
Fair value through profit or loss category comprises financial liabilities that are derivatives or financial liabilities that are
specifically designated into this category upon initial recognition.
Other financial liabilities categorised as fair value through profit or loss are subsequently measured at their fair values with
the gain or loss recognised in profit or loss.
(iii) Derecognition
A financial asset or part of it is derecognised when, and only when the contractual rights to the cash flows from the financial
asset expire or control of the asset is not retained or substantially all of the risks and rewards of ownership of the financial
asset are transferred to another party. On derecognition of a financial asset, the difference between the carrying amount
and the sum of the consideration received (including any new asset obtained less any new liability assumed) and any
cumulative gain or loss that had been recognised in equity is recognised in the profit or loss.
A financial liability or a part of it is derecognised when, and only when, the obligation specified in the contract is discharged,
cancelled or expires. On derecognition of a financial liability, the difference between the carrying amount of the financial
liability extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred
or liabilities assumed, is recognised in profit or loss.
2.4 Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment are measured at cost less any accumulated depreciation and any accumulated
impairment losses.
Cost includes expenditures that are directly attributable to the acquisition of the asset and any other costs directly
attributable to bringing the asset to working condition for its intended use, and the costs of dismantling and removing
the items and restoring the site on which they are located. The cost of self-constructed assets also includes the cost of
materials and direct labour. For qualifying assets, borrowing costs are capitalised in accordance with the accounting policy
on borrowing costs.

& Marketing Bhd
2.4 Property, plant and equipment (continued)
(i) Recognition and measurement (continued)
Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.
When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as
separate items (major components) of property, plant and equipment.
The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from
disposal with the carrying amount of property, plant and equipment and is recognised net within other income and other
expenses respectively in the profit or loss.
(ii) Subsequent costs
The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of the
item if it is probable that the future economic benefits embodied within the component will flow to the Company, and its cost
can be measured reliably. The carrying amount of the replaced component is derecognised to profit or loss. The costs of
the day-to-day servicing of property, plant and equipment are recognised in the profit or loss as incurred.
(iii) Depreciation
Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are
assessed, and if a component has a useful life that is different from the remainder of that asset, then that component is
depreciated separately.
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of
an item of property, plant and equipment from the date that they are available for use. Leased assets are depreciated over
the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership
by the end of the lease term. Freehold land is not depreciated. Property, plant and equipment under construction are not
depreciated until the assets are ready for their intended use. The estimated useful lives for the current and comparative
periods are as follows:
Buildings and improvements 20-50 years

Plant and equipment 10-33 years
Depreciation methods, useful lives and residual values are reviewed, at end of the reporting period, and adjusted as appropriate.
2.5 Leased assets
(i) Finance lease
Leases in terms of which the Company assumes substantially all the risks and rewards of ownership are classified as
finance leases. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value
and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in
accordance with the accounting policy applicable to that asset.
Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of
the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant
periodic rate of interest on the remaining balance of the liability. Contingent lease payments are accounted for by revising
the minimum lease payments over the remaining term of the lease when the lease adjustment is confirmed.
Leasehold land which in substance is a finance lease is classified as property, plant and equipment.
2.5 Leased assets (continued)
(ii) Operating leases
Leases, where the Company does not assume substantially all the risks and rewards of ownership are classified as operating
leases and, except for property interest held under operating lease, the leased assets are not recognised on the statement
of financial position.
Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease.
Lease incentives received are recognised in profit or loss as an integral part of the total lease expense, over the term of the
lease. Contingent rentals are charged to profit or loss in the reporting period in which they are incurred.
Leasehold land which in substance is an operating lease is classified as prepaid lease rentals.
2.6 Intangible assets
(i) Software cost
Software cost is measured at cost less any accumulated amortisation. Computer software costs are amortised on a straight-
line basis over the estimated useful life of the software, which normally falls within a range of 5 to 7 years.
2.7 Inventories
Crude oil and petroleum product inventories are stated at the lower of cost and net realisable value. Cost includes all applicable
purchase costs and production overheads and is determined on the first-in first-out (FIFO) basis. Materials and supplies are
valued at cost, determined on a weighted average basis, and a deduction is made for obsolete and slow moving stocks.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and
the estimated costs necessary to make the sale.
2.8 Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, balances and deposits with banks.
2.9 Impairment
(i) Financial assets
All financial assets (except for financial assets categorised as fair value through profit or loss) are assessed at each
reporting date whether there is any objective evidence of impairment as a result of one or more events having an impact
on the estimated future cash flows of the asset. Losses expected as a result of future events, no matter how likely, are not
recognised.
An impairment loss in respect of loans and receivables is recognised in profit or loss and is measured as the difference
between the assets carrying amount and the present value of estimated future cash flows discounted at the assets original
effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account.

& Marketing Bhd
2.9 Impairment (continued)
(i) Financial assets (continued)
If, in a subsequent period, the fair value of a debt instrument increases and the increase can be objectively related to an
event occurring after the impairment loss was recognised in profit or loss, the impairment loss is reversed, to the extent
that the assets carrying amount does not exceed what the carrying amount would have been had the impairment not been
recognised at the date the impairment is reversed. The amount of the reversal is recognised in profit or loss.
(ii) Other assets
The carrying amounts of other assets (except for inventories and deferred tax assets) are reviewed at the end of each
reporting period to determine whether there is any indication of impairment. If any such indication exists, then the assets
recoverable amount is estimated.
For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash
inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating units.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs of
disposal. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or
cash-generating unit.
An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit exceeds its estimated
recoverable amount.
Impairment losses are recognised in the profit or loss. Impairment losses recognised in respect of cash-generating units
are allocated to reduce the carrying amounts of the other assets in the cash-generating unit (groups of cash-generating
units) on a pro rata basis.
Impairment losses recognised in prior periods are assessed at the end of each reporting period for any indications that the
loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used
to determine the recoverable amount since the last impairment loss was recognised. An impairment loss is reversed only
to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined, net
of depreciation or amortisation, if no impairment loss had been recognised. Reversals of impairment losses are credited to
profit or loss in the financial year in which the reversals are recognised.
2.10 Equity instruments
Instruments classified as equity are measured at cost on initial recognition and are not remeasured subsequently.
(i) Ordinary shares
Ordinary shares are classified as equity.
(ii) Distributions of assets to owners of the Company
The Company measures a liability to distribute assets as a dividend to the owners of the Company at the fair value of the
assets to be distributed. The carrying amount of the dividend is remeasured at each reporting period and at the settlement
date, with any changes recognised directly in equity as adjustments to the amount of the distribution. On settlement of the
transaction, the Company recognises the difference, if any, between the carrying amount of the assets distributed and the
carrying amount of the liability in profit or loss.
2.11 Employee benefits
(i) Short-term employee benefits
Short-term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave and sick leave are
measured on an undiscounted basis and are expensed as the related service is provided.
A liability is recognised for the amount expected to be paid under short-term cash bonus if the Company has a present legal
or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be
estimated reliably.
(ii) State plans
The Companys contributions to statutory pension funds are charged to profit or loss in the financial year to which they relate.
(iii) Defined benefit plans
The Companys net obligation in respect of defined benefit plans is calculated separately for each plan by estimating
the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and
deducting the fair value of any plan assets.
The calculation of defined benefit obligations is performed by a qualified actuary every three years using the projected
unit credit method. When the calculation results in a potential asset for the Company, the recognised asset is limited to
the present value of economic benefits available in the form of any future refunds from the plan or reductions in future
contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable
minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses and the effect of the asset
ceiling (if any, excluding interest), are recognised immediately in other comprehensive income. The Company determines
the net interest expense or income on the net defined liability or asset for the period by applying the discount rate used to
measure the defined benefit obligation at the beginning of the annual period to the then net defined benefit liability or asset,
taking into account any changes in the net defined benefit liability or asset during the period as a result of contributions and
benefit payments.
Net interest expense and other expenses relating to defined benefit plans are recognised in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past
service or the gain or loss on curtailment is recognised immediately in profit or loss. The Company recognises gains and
losses on the settlement of a defined benefit plan when the settlement occurs.
2.12 Provisions
A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be
estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are
determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.

& Marketing Bhd
2.13 Revenue and other income
(i) Goods sold
Revenue from the sale of goods in the course of ordinary activities is measured at fair value of the consideration received
or receivable, net of returns and allowances, trade discounts and volume rebates. Revenue is recognised when persuasive
evidence exists, usually in the form of an executed sales agreement, that the significant risks and rewards of ownership
have been transferred to the customer, recovery of the consideration is probable, the associated costs and possible return
of goods can be estimated reliably, and there is no continuing management involvement with the goods, and the amount of
revenue can be measured reliably. If it is probable that discounts will be granted and the amount can be measured reliably,
then the discount is recognised as a reduction of revenue as the sales are recognised.
(ii) Interest income
Interest income is recognised as it accrues using the effective interest method in profit or loss.
2.14 Borrowing costs
Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised
in profit or loss using the effective interest method.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily
take a substantial period of time to get ready for their intended use or sale, are capitalised as part of the cost of those assets.
The capitalisation of borrowing costs as part of the cost of a qualifying asset commences when expenditure for the asset is being
incurred, borrowing costs are being incurred and activities that are necessary to prepare the asset for its intended use or sale are
in progress. Capitalisation of borrowing costs is suspended or ceases when substantially all the activities necessary to prepare
the qualifying asset for its intended use or sale are interrupted or completed.
2.15 Income tax
Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss except to
the extent that it relates to items recognised directly in equity or other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or
substantively enacted by the end of the reporting period, and any adjustment to tax payable in respect of previous financial years.
Deferred tax is recognised using the liability method, providing for temporary differences between the carrying amounts of assets and
liabilities in the statement of financial position and their tax bases. Deferred tax is not recognised for the temporary differences arising
from the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting
nor taxable profit or loss. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when
they reverse, based on the laws that have been enacted or substantively enacted by the end of the reporting period.
The amount of deferred tax recognised is measured based on the expected manner of realisation or settlement of the carrying
amount of the assets and liabilities, using tax rates enacted or substantively enacted at the reporting date. Deferred tax assets
and liabilities are not discounted.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and
they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend
to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which the
temporary difference can be utilised. Deferred tax assets are reviewed at the end of each reporting period and are reduced to the
extent that it is no longer probable that the related tax benefit will be realised.
2.16 Earnings per ordinary share
The Company presents basic earnings per share data for its ordinary shares (EPS).
Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted
average number of ordinary shares outstanding during the period, adjusted for own shares held.

2.17 Operating segments
An operating segment is a component of the Company that engages in business activities from which it may earn revenues and
incur expenses, including revenues and expenses that relate to transactions with any of the Companys other components. All
operating segments operating results are reviewed regularly by the chief operating decision maker, which in this case is the
Chief Executive Officer of the Company, to make decisions about resources to be allocated to the segment and to assess its
performance, and for which discrete financial information is available.
2.18 Fair value measurement
Fair value of an asset or a liability, except for share-based payment and lease transactions, is determined as the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. The measurement assumes that the transaction to sell the asset or transfer the liability takes place either in
the principal market or in the absence of a principal market, in the most advantageous market.
For non-financial asset, the fair value measurement takes into account a market participants ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its
highest and best use.
When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. Fair values
are categorised into different levels in a fair value hierarchy based on the input used in the valuation technique as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the
measurement date.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
or indirectly.
Level 3: unobservable inputs for the asset or liability.
The Company recognises transfers between levels of the fair value hierarchy as of the date of the event or change in circumstances
that caused the transfers.
2.19 Contingencies
Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the
obligation is not recognised in the statements of financial position and is disclosed as a contigent liability, unless the probability
of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence and
non-occurrence of one of more future events, are also disclosed as contingent liabilities unless the probability of outflow of
economic benefits is remote.

& Marketing Bhd
3. Cash and cash equivalents
2014 2013
RM000 RM000
Deposits placed with a licensed bank 304,340 4,219

Cash and bank balances 50,328 93,374
354,668 97,593
Deposits placed with a licensed bank of RM4,340,000 (2013: RM4,219,000) held in accordance with the sale and purchase agreement
relating to the Companys purchase of a participating interest in the Multi Products Pipeline System and related distribution terminal
facilities (MPP). The amount will be utilised for payment in respect of the vendors real property gains taxes upon decision by the
Inland Revenue Board.
4. Derivative financial assets/(liabilities)
2014 2013
Nominal Nominal
value Assets Liabilities value Assets Liabilities
RM000 RM000 RM000 RM000 RM000 RM000
Derivatives held for trading

at fair value through profit
or loss
- Forward exchange
contracts 430,509 1,096 (362) 377,602 3,101 (909)
- Commodity swap 11,613 18,411 (472) 61,293 28 (1,472)
- Commodity options - - - 70,139 - (1,953)
442,122 19,507 (834) 509,034 3,129 (4,334)
Forward exchange contracts are used to manage the foreign currency exposures arising from the Companys receivables and payables
denominated in currencies other than the functional currency of the Company. Most of the forward exchange contracts have maturities
of less than one year after the end of the reporting period.
Commodity swap and options are used to mitigate crude and petroleum products price risks arising from volatile market fluctuations.
All of the commodity derivative contracts have maturities of less than 180 days after the end of the reporting period.
5. Trade and other receivables
2014 2013
RM000 RM000
Trade
Trade receivables 122,097 187,166
Less: Individual impairment allowance (1,585) (1,733)
120,512 185,433
Amounts due from related companies 109,929 119,081
230,441 304,514
Non-trade
Amounts due from related companies 330 1,207
Subsidies receivable 107,098 466,974
Prepayments 21,826 20,185
Other receivables 62,397 16,651
191,651 505,017
422,092 809,531
Related party balances
The trade balances due from related companies are subject to normal trade terms. The non-trade balances due from related companies
are unsecured, interest free and are repayable on demand.
Subsidies receivable
Subsidies receivable are amount due from the Government of Malaysia under the Automatic Pricing Mechanism. On average, these
receivables are collected within 2 to 3 months.
Estimation uncertainty and critical judgements
The Company makes impairment of receivables based on assessment of recoverability. Whilst managements judgement is guided by
past experiences, judgement is made about the future recovery of debts.

& Marketing Bhd
6. Inventories
2014 2013
RM000 RM000
Crude oil 158,399 275,788

Petroleum products 274,436 409,752
Material and supplies 9,550 9,225
442,385 694,765
Recognised in profit or loss:

Inventories recognised as cost of sales 10,617,708 10,787,550
Write down to net realisable value, the write down is included in cost of sales 27,547 -
7. Property, plant and equipment
Freehold Leasehold Buildings and Plant and Capital project

Land land improvements equipment in-progress Total
RM000 RM000 RM000 RM000 RM000 RM000
Cost
At 1 January 2013 200,044 106,938 390,791 1,130,100 42,449 1,870,322
Additions - - 36,098 39,913 66,697 142,708
Disposal - - - (2,016) - (2,016)
Write off - - (2,236) (41,311) - (43,547)
Reclassifications - - 10,948 22,039 (32,987) -
At 31 December 2013/
1 January 2014 200,044 106,938 435,601 1,148,725 76,159 1,967,467
Additions - - 12,525 17,495 69,584 99,604
Disposal (206) (75) - (7,124) - (7,405)
Write off - - (979) (7,995) - (8,974)
Reclassifications - - 9,950 15,443 (25,393) -
At 31 December 2014 199,838 106,863 457,097 1,166,544 120,350 2,050,692

7. Property, plant and equipment (continued)
Freehold Leasehold Buildings and Plant and Capital project

Land land improvements equipment in-progress Total
RM000 RM000 RM000 RM000 RM000 RM000
Accumulated
depreciation
At 1 January 2013 - 17,626 221,250 759,921 - 998,797
Depreciation during the
year - 1,185 18,150 41,289 - 60,624
Disposal - - - (1,603) - (1,603)
Write off - - (1,274) (34,782) - (36,056)
1 January 2014 - 18,811 238,126 764,825 - 1,021,762
Depreciation during
the year - 1,185 18,425 40,220 - 59,830
Disposal - (37) - (7,108) - (7,145)
Write off - - (234) (5,112) - (5,346)
At 31 December 2014 - 19,959 256,317 792,825 - 1,069,101
Carrying amounts
At 1 January 2013 200,044 89,312 169,541 370,179 42,449 871,525
1 January 2014 200,044 88,127 197,475 383,900 76,159 945,705
At 31 December 2014 199,838 86,904 200,780 373,719 120,350 981,591
Included in the above property, plant and equipment is the net book value for the Companys 20% participating interest in the joint
venture assets of MPP amounting to RM86,877,000 (2013: RM92,573,000).
During the financial year, the Company wrote off certain properties and equipment amounting to RM3,628,000 (2013: RM7,491,000) due
to on-going rebranding of retail stations and replacement of equipment.
Included in carrying amounts of leasehold land is the net book value for leasehold land with unexpired lease period of more than
50 years amounting to RM82,570,000 (2013: RM83,675,000).

& Marketing Bhd
8. Long-term assets
2014 2013
RM000 RM000
Prepaid lease rentals 153,058 160,599

Deposits 2,459 2,574
Marketing assistance to dealers 20,413 23,914
Others 7,837 12,369
183,767 199,456

The movement in the long term assets are as follows:

At 1 January 199,456 211,896
Addition 4,337 9,703
Amortisation (20,823) (20,347)
Reclassification from short term 1,034 29
Others (237) (1,825)
183,767 199,456

Prepaid lease rentals
Included in the above prepaid lease rentals are leasehold land amounting to RM1,336,000 (2013: RM1,368,000) for the Companys 20%
participating interest in the joint venture assets of MPP.
Marketing assistance to dealer
The marketing assistance programme is provided to selected dealers to assist in the construction of the service stations in order for
the Company to gain access to locations and generate future revenue streams and is amortised over the period of the agreements.
9. Intangible assets - software
2014 2013
RM000 RM000
Cost 24,294 24,294

Accumulated amortisation (17,811) (15,156)
Net book value 6,483 9,138
At 1 January 9,138 12,310

Amortisation (2,655) (2,728)
Write off - (444)
Net book value 6,483 9,138

10. Loans and borrowings
2014 2013
RM000 RM000
Current
Working capital facility 790,000 900,000
Non-current
Long term loan 198,276 -
988,276 900,000
(a) In April 2012, the Company entered into 5-year Working Capital Facility Agreement of RM900 million with Maybank Investment
Bank Berhad (as the agent) for working capital requirements, payment of inter affiliate payables and the refinancing of the
existing facilities and existing instruments then. Borrowings are normally settled within 30 to 60 days.
(b) During the year, the Company entered into two 5-year Term Loan Facility Agreement of RM100 million each with Malayan Banking
Berhad and CIMB Bank Berhad.
11. Trade and other payables
2014 2013
RM000 RM000
Current
- Trade
Trade payables 550,941 830,680
- Non-trade
Accrued expenses 52,313 72,947
MPP deposit 4,394 4,271
Others 495 241
Amounts due to related companies 25 10,901
608,168 919,040
Related party balances
The trade balances due to related companies are subject to normal trade terms. The non-trade balances due to related companies are
unsecured, interest free and are repayable on demand.
Accrued expenses
Other payables are generally those of a non-trade nature that arose from transactions other than the purchase of crude and petroleum products.

& Marketing Bhd
12. Retirement benefits obligations
2014 2013
RM000 RM000
Retirement benefits obligations

- Current 4,452 4,604
- Non-current 42,304 42,000
46,756 46,604
The Company operates an unfunded defined benefit retirement plan for its regular national employees. The plan assumptions are
reappraised by an independent actuary every three years. The latest actuarial appraisal was carried out in December 2013.
The defined benefit plan exposes the Company to actuarial risks, such as longevity risk, currency risk, interest rate risk and market
(investment) risk.
Movement in retirement benefits obligations
The following table shows reconciliation from the opening balance to the closing balance for the retirement benefits obligation and its
components.
2014 2013
RM000 RM000
Balance at 1 January 46,604 60,106
Included in profit or loss

Current service cost 2,568 2,443
Interest cost 2,430 2,841
51,602 65,390
Included in other comprehensive income

Remeasurement of retirement benefit obligation
Actuarial gain arising from:
- Financial assumptions - (1,730)
- Experience adjustments (719) (14,063)
(719) (15,793)
Other
Benefit paid (4,127) (4,538)
Intercompany transfer - 1,545
(4,127) (2,993)
Balance at 31 December 46,756 46,604

12. Retirement benefits obligations (continued)
Actuarial assumptions
Principal actuarial assumptions at the end of the reporting period (expressed as weighted averages):
2014 2013
% %
Discount rate 5.5 5.5

Future salary growth 6.0 6.0
At 31 December 2014, the weighted average duration of the defined benefit obligation was 7.51 years (2013: 7.55 years).
Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant,
would have affected the defined benefit obligation by the amounts shown below.

2014 2013
Increase Decrease Increase Decrease
RM000 RM000 RM000 RM000
Discount rate (1% movement) (3,120) 3,554 (3,131) 3,566

Future salary growth (1% movement) 4,462 (3,979) 3,933 (3,522)
Although the analysis does not account to the full distribution of cash flows expected under the plan, it does provide an approximation
of the sensitivity of the assumptions shown.
13. Deferred tax liabilities
Recognised deferred tax assets/(liabilities)
Deferred tax assets and liabilities are attributable to the following:
Assets Liabilities Net

2014 2013 2014 2013 2014 2013
RM000 RM000 RM000 RM000 RM000 RM000
Property, plant and equipment 19,574 - (69,771) (71,241) (50,197) (71,241)

Retirement benefits obligation 4,703 4,922 - - 4,703 4,922
Tax loss carry-forwards 4,945 4,448 - - 4,945 4,448
Other items 7,032 1,742 (4,668) - 2,364 1,742
Net tax liabilities 36,254 11,112 (74,439) (71,241) (38,185) (60,129)

& Marketing Bhd
13. Deferred tax liabilities (continued)
Movement in temporary differences during the year
Recognised Recognised At Recognised Recognised

At in profit directly 31.12.2013/ in profit directly At
1.1.2013 or loss in equity 1.1.2014 or loss in equity 31.12.2014
(Note 20) (Note 20) (Note 20) (Note 20)
RM000 RM000 RM000 RM000 RM000 RM000 RM000
Property, plant and

equipment (73,551) 2,310 - (71,241) 21,044 - (50,197)
Retirement benefits
obligation 6,002 2,868 (3,948) 4,922 (10) (209) 4,703
Tax loss carry-
forwards - 4,448 - 4,448 497 - 4,945
Other items 191 1,551 - 1,742 622 - 2,364
Net tax liabilities (67,358) 11,177 (3,948) (60,129) 22,153 (209) (38,185)
14. Capital and reserves
Share capital
Number Number
Amount of shares Amount of shares
2014 2014 2013 2013
RM000 000 RM000 000
Authorised: Ordinary share of RM0.50 each 150,000 300,000 150,000 300,000
Issued and fully paid shares: Ordinary share of RM0.50 each 135,000 270,000 135,000 270,000
Ordinary shares
The holders of ordinary shares are entitled to receive dividends as declared from time to time, and are entitled to one vote per share at
meetings of the Company.
Capital redemption reserves
The Companys capital redemption reserve arises from redemption of 8,000,000 preference shares in 1986.
15. Revenue
2014 2013
RM000 RM000
Sales to related companies 2,417,700 2,740,861

Third party sales 8,477,780 8,382,283
10,895,480 11,123,144
Credit card merchandise fees (21) 277
Other revenues and rebates 5,263 4,198
Allied business rental 307 481
10,901,029 11,128,100
Turnover represents the value of goods sold inclusive of subsidies and net of Government duties and taxes.
16. Finance income
2014 2013
RM000 RM000
Interest income of financial assets that are not at fair value through profit or loss:
- Advances to related companies 823 1,631
- Other finance income 214 181
1,037 1,812
17. Finance costs
2014 2013
RM000 RM000
Restated
Interest expense of financial liabilities that are not at fair value through profit or loss:
- Loans 60,847 50,882
- Other finance costs 12,139 15,695
72,986 66,577

& Marketing Bhd
18. Loss before tax
2014 2013
RM000 RM000
Restated
Loss before tax is arrived at after charging:

Auditors remuneration:
- Audit fees 341 310
Foreign exchange
- Realised foreign exchange loss 28,980 39,740
- Unrealised foreign exchange loss 302 5,767
Hire of plant and machinery 293 428
Impairment loss on trade receivables - 105
Intangible assets
- Amortisation 2,655 2,728
- Written off - 444
Long-term assets
- Amortisation
- Prepaid lease rentals 11,185 10,577
- Marketing assistance to dealers 3,879 3,513
- Others 5,759 6,257
Personnel expenses (including key management personnel):
- Contributions to Employees Provident Fund 5,609 5,025
- Wages, salaries and others 50,399 44,665
- Retirement benefit 5,173 2,479
Property, plant and equipment
- Depreciation 59,830 60,624
- Written off 3,628 7,491
- Loss on disposal - 34
Inventories write down 27,547 -
Rental expense in respect of property 4,332 2,027
Repair and maintenance expense 29,470 35,759
Trucking cost 50,695 55,005
and after crediting:

Licence fees 35,558 34,136
Gain on disposal of property, plant and equipment 9,834 -
19. Other comprehensive income
Before tax Tax expense Net of tax

RM000 RM000 RM000
2014
Remeasurement of defined benefit liability 719 (209) 510
2013
Remeasurement of defined benefit liability 15,793 (3,948) 11,845
20. Tax benefits
Recognised in profit or loss
2014 2013
RM000 RM000
Current tax expense

Prior year 432 5
Real Property Gain Tax 427 -
Total current tax recognised in profit or loss 859 5
Deferred tax expense

Origination and reversal of temporary differences (16,064) (10,268)
Over provision in prior year (6,089) (909)
Total deferred tax recognised in profit or loss (22,153) (11,177)
Total income tax benefit (21,294) (11,172)

& Marketing Bhd
20. Tax benefits (continued)
Recognised in profit or loss (continued)
2014 2013
RM000 RM000
Reconciliation of tax expense
Loss before tax (85,772) (75,418)
Income tax calculated using Malaysian tax rate of 25% (21,443) (18,855)
Reduction in tax rate (1,545) -
Non-deductible expenses 9,069 8,587
Tax-exempt income (2,145) -
Real Property Gain Tax 427 -
Over provided in prior years (5,657) (904)
(21,294) (11,172)
Income tax recognised directly in equity

- deferred tax 209 3,948
21. Loss per ordinary share

The calculation of basic loss per ordinary share at 31 December 2014 was based on the loss attributable to ordinary shareholders and
the number of ordinary shares in issue, calculated as follows:
Loss attributable to ordinary shareholders
2014 2013
Net loss attributable to shareholders (RM000) (64,478) (64,246)

Number of ordinary share units in issue (000) 270,000 270,000
Basic loss per share unit (sen) (23.9) (23.8)

Diluted EPS is not presented as the Company has no potential shares or other instruments with dilutive effects.
22. Dividends
Dividends recognised by the Company:
Sen Total Date of

per share amount payment
RM RM000
2014
Final 2013 ordinary (single tier) 14 37,800 25 June 2014
2013
Final 2012 ordinary (net of tax) 14 28,350 20 June 2013
Considering the losses suffered by the Company for two consecutive years and the need to prioritise funds for operations and manage
bank borrowings, the Directors are not recommending a dividend payout for 2014.
23. Operating segments
The Company is organised as one integrated business segment which operates to manufacture and sell petroleum products. These
integrated activities are known across the petroleum industry as the Downstream segment. As such, the assets and liabilities are
disclosed within the financial statements as one segment.
Revenues are mainly derived from the sale of petroleum products to domestic customers including its affiliates and competitors. A
breakdown of the revenues by geographical location is as follows:
2014 2013
RM000 RM000
Foreign 1,100,287 1,301,992

Domestic 9,800,742 9,826,108
10,901,029 11,128,100
Major customers
The following are major customers with revenue equal or more than 10% of the Companys total revenue:
2014 2013
RM000 RM000
Related party
- Company A 2,417,700 2,666,518
Others
- Company B -* 1,171,267
* There is no external customer with revenue equal or more than 10% of the Company in 2014.

& Marketing Bhd
23. Operating segments (continued)
Other than these major customers, there is no individual customer contributing to equal or more than 10% of the Companys total
revenue for the current and previous financial years.
All non-current assets of the Company are located in Malaysia.
24. Financial instruments

24.1 Categories of financial instruments
The table below provides an analysis of financial instruments categorised as follows:

(a) Loans and receivables (L&R);
(b) Fair value through profit or loss (FVTPL):
- Held for trading (HFT), and
(c) Financial liabilities measured at amortised cost (FL).
Carrying
amount L&R/(FL) FVTPL-HFT
RM000 RM000 RM000
2014
Financial assets
Trade and other receivables 400,266 400,266 -
Cash and cash equivalents 354,668 354,668 -
Derivative financial assets 19,507 - 19,507
774,441 754,934 19,507
Loan and borrowings (988,276) (988,276) -
Trade and other payables (608,168) (608,168) -
Derivative financial liabilities (834) - (834)
(1,597,278) (1,596,444) (834)
2013
Financial assets
Trade and other receivables 789,346 789,346 -
Cash and cash equivalents 97,593 97,593 -
Derivative financial assets 3,129 - 3,129
890,068 886,939 3,129
Loan and borrowings (900,000) (900,000) -
Trade and other payables (919,040) (919,040) -
Derivative financial liabilities (4,334) - (4,334)
(1,823,374) (1,819,040) (4,334)
24. Financial instruments (continued)
24.2 Net gains and (losses) arising from financial instruments
2014 2013
RM000 RM000
Restated
Net gain/(losses) on:

Fair value through profit or loss:
- Held for trading 18,673 (1,205)
Financial liabilities measured at amortised cost

- Finance costs (72,986) (66,577)
- Unrealised foreign exchange loss (506) (7,400)
- Realised foreign exchange loss (34,016) (41,999)
(107,508) (115,976)
Loan and receivables

- Finance income 1,037 1,812
- Allowance for doubtful debts - (105)
- Unrealised foreign exchange gain 204 1,633
- Realised foreign exchange gain 5,036 2,259
6,277 5,599
(82,558) (111,582)
24.3 Financial risk management
The Company has exposure to the following risks from its use of financial instruments:
Credit risk
Liquidity risk
Market risk
24.4 Credit risk
Credit risk is the risk of a financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations. The Companys exposure to credit risk arises principally from its receivables from customers.
Receivables
Risk management objectives, policies and processes for managing the risk

Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are
performed on customers requiring credit over a certain amount.

& Marketing Bhd
24.4 Credit risk (continued)
Receivables (continued)
Exposure to credit risk, credit quality and collateral

As at the end of the reporting period, the maximum exposure to credit risk arising from receivables is represented by the carrying
amounts in the statement of financial position.
Management has taken reasonable steps to ensure that receivables that are neither past due nor impaired are stated at their
realisable values. A significant portion of these receivables are regular customers that have been transacting with the Company.
The Company uses ageing analysis to monitor the credit quality of the receivables. Any receivables having significant balances
past due more than its credit term, which are deemed to have higher credit risk, are monitored individually.
The exposure of credit risk for trade receivables as at the end of the reporting period by geographic region was:

2014 2013
RM000 RM000
Domestic 41,775 81,510

Foreign 78,737 103,923
120,512 185,433
Impairment losses
The Company maintains an ageing analysis in respect of trade receivables only. The ageing of trade receivables as at the end of
the reporting period was:
Individual
Gross impairment Net
RM000 RM000 RM000
2014
Not past due 118,370 - 118,370
Past due 1 - 90 days 2,133 - 2,133
Past due 91 - 180 days - - -
Past due 181 - 365 days - - -
Past due more than 365 days 1,594 (1,585) 9
122,097 (1,585) 120,512
2013
Not past due 185,039 - 185,039
Past due 1 - 90 days 386 - 386
Past due 91 - 180 days - - -
Past due 181 - 365 days - - -
Past due more than 365 days 1,741 (1,733) 8
187,166 (1,733) 185,433
24.4 Credit risk (continued)
Receivables (continued)
Impairment losses (continued)
No allowance for impairment losses of trade receivables has been made for the remaining past due receivables as the Company
monitors the results and repayments of these customers regularly and are confident of the ability of the customers to repay the
balances owing.
The movements in the allowance for impairment losses of trade receivables during the financial year were:
2014 2013
RM000 RM000
At 1 January 1,733 1,908

Allowance made during the year - 105
Write off (148) (280)
At 31 December 1,585 1,733
The allowance account in respect of trade receivables is used to record impairment losses. Unless the Company is satisfied that
recovery of the amount is possible, the amount considered irrecoverable is written off against the receivable directly.
Inter-company advances
The Company provides advances to related companies. The Company monitors the results of the related companies regularly.
Exposure to credit risk, credit quality and collateral
As at the end of the reporting period, the maximum exposure to credit risk is represented by their carrying amounts in the
statement of financial position.
Advances are only provided to related companies which are wholly owned by the immediate holding company.
Impairment losses
As at the end of the reporting period, there was no indication that the advances to the related companies are not recoverable.
The Company does not specifically monitor the ageing of advances to the related companies. Nevertheless, these advances have
been overdue for less than a year.

& Marketing Bhd
24.5 Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Companys exposure
to liquidity risk arises principally from its various payables, loans and borrowings.
The Company maintains a level of cash and cash equivalents, bank facilities and inter-company financing arrangement deemed
adequate by management to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they fall
due. The Company reviews its revolving credit facilities on a periodic basis. In addition the Company has subscribed to the fund
pooling arrangements made available by its affiliates, Petron Fuel International Sdn. Bhd. (PFISB) and Petron Oil Malaysia
Sdn. Bhd. (POMSB). This inter-company financing arrangement allows the Company to either draw cash from the pool in the
event of a shortfall, or place cash into the pool in the event of excess, at competitive interest rates on a daily basis.
The Company continues to optimise the mix of its borrowing facilities to maximise financing flexibility whilst reducing financing
cost. These facilities are short-term in nature unless opportunities arise to secure favourable longer term borrowing facilities.
Liquidity risk may also arise if debtors are not able to settle obligations to the Company within the normal credit term. To manage
this risk, the Company periodically assesses the financial viability of debtors and may require certain debtors to provide bank
guarantees or other security.
It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly
different amounts.
Maturity analysis
The table below summarises the maturity profile of the Companys financial liabilities as at the end of the reporting period based
on undiscounted contractual payments:
Contractual
Carrying interest Contractual Under 1-2 2-5
amount rate/coupon cash flows 1 year years years
RM000 RM000 RM000 RM000 RM000
2014
Non-derivative financial liabilities
Trade and other payables 608,168 - 608,168 608,168 - -
Loans and borrowings 988,276 5.2% - 6.1% 1,067,846 848,050 50,699 169,097
1,596,444 1,676,014 1,456,218 50,699 169,097
Derivative financial assets
Forward exchange contracts
(gross settled):
Outflow - - 430,509 430,509 - -
Inflow (734) - (431,243) (431,243) - -
Commodity swap (gross settled):
Outflow - - 11,613 11,613 - -
Inflow (17,939) - (29,553) (29,553) - -
Commodity options - - - - - -
1,577,771 1,657,340 1,437,544 50,699 169,097
24.5 Liquidity risk (continued)
Maturity analysis (continued)
The table below summarises the maturity profile of the Companys financial liabilities as at the end of reporting period based on
undiscounted contractual payments:
Contractual
Carrying interest Contractual Under 1-2 2-5
amount rate/coupon cash flows 1 year years years
RM000 RM000 RM000 RM000 RM000
2013 Restated
Trade and other payables 919,040 - 919,040 919,040 - -
Loans and borrowings 900,000 5.9% 906,675 906,675 - -
1,819,040 1,825,715 1,825,715 - -
Derivative financial assets
Forward exchange contracts
(gross settled):
Outflow - - 377,602 377,602 - -
Inflow (2,192) - (379,794) (379,794) - -
Commodity swap (gross settled):
Outflow 1,444 - 61,915 61,915 - -
Inflow - - (60,471) (60,471) - -
Commodity options 1,953 - 1,953 1,953 - -
1,820,245 1,826,920 1,826,920 - -
24.6 Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and other prices that will
affect the Companys financial position or cash flows.
24.6.1 Currency risk
The Company is exposed to foreign currency risk on sales and purchases that are denominated in a currency other than the
functional currency of the Company. The currencies giving rise to this risk are primarily U.S. Dollar (USD), Singapore Dollar
(SGD) and Euro (EUR).
The Company uses forward exchange contracts to hedge its foreign currency risk. All of the forward contracts have maturities of
less than one year after the end of the reporting period.

& Marketing Bhd
24.6 Market risk (continued)
24.6.1 Currency risk (continued)
Exposure to foreign currency risk
The Companys exposure to foreign currency (a currency which is other than the functional currency of the Company) risk,
based on carrying amounts as at the end of the reporting period was:
Denominated in
USD EUR SGD
RM000 RM000 RM000
2014
Cash and cash equivalents 41,802 - -
Trade and other receivables 78,738 - -
Trade and other payables (441,049) (6) (488)
Net exposure (320,509) (6) (488)
2013 Restated
Cash and cash equivalents 48,530 - -
Trade and other receivables 103,923 - -
Trade and other payables (784,232) (27) (6)
Net exposure (631,779) (27) (6)
Currency risk sensitivity analysis
Foreign currency risk mainly arises from USD. The exposure to other currencies is not material and hence, sensitivity analysis is
not presented.
A 10% (2013:10%) strengthening of the RM against USD at the end of the reporting period would have increased (decreased)
pre-tax profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the
Company considered to be reasonably possible at the end of the reporting period. This analysis assumes that all other variables,
in particular interest rates, remained constant and ignores any impact of forecasted sales and purchases.
Profit or loss
2014 2013
RM000 RM000
USD 32,051 63,181
A 10% (2013:10%) weakening of RM against USD at the end of the reporting period would have had equal but opposite effect on
the above currency to the amounts shown above, on the basis that all other variables remained constant.
24.6 Market risk (continued)
24.6.2 Interest rate risk
The Companys variable rate borrowings are exposed to a risk of change in cash flows due to changes in interest rates.
Short term receivables and payables are not significantly exposed to interest rate risk.
Risk management objectives, practice and processes for managing the risk
Interest rate exposure arising from the Companys borrowings is managed through monitoring and reviewing interest rate changes
in the market and its impact to the Companys financial performance. The Company does not use derivative financial instruments
to hedge its debt obligations.
Exposure to interest rate risk
The interest rate profile of the Companys significant interest-bearing financial instruments, based on carrying amounts as at the
end of the reporting period was:
2014 2013
RM000 RM000
Floating rate instruments

Financial liabilities (988,276) (900,000)
Interest rate risk sensitivity analysis
(a) Cash flow sensitivity analysis for variable rate instruments
The borrowings are generally based on floating interest rates unless opportunities arise for competitive fixed rate financing.
The Companys financing arrangements are typically tracked against the Kuala Lumpur Interbank Offered Rate (KLIBOR).
The impact of a 10 basis point (bp) change in interest rate affecting the Companys borrowing would not be material to the
Companys financial statements.
A change of 10 basis points in interest rates at the end of the reporting period would have increased/(decreased) after tax
profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency
rates, remained constant.
Profit or loss
2014 2013
10 bp 10 bp 10 bp 10 bp
increase decrease increase decrease
RM000 RM000 RM000 RM000
Floating rate instruments (25) 25 (21) 21

& Marketing Bhd
24.7 Fair value information
The carrying amounts of cash and cash equivalents, short term receivables and payables and short term borrowings reasonably
approximate fair values due to the relatively short term nature of these financial instruments.
The table below analyses financial instruments carried at fair value and those not carried at fair value for which fair value is
disclosed, together with their fair values and carrying amounts shown in the statement of financial position.
Fair value of financial instruments Fair value of financial instruments

Total
carried at fair value not carried at fair value
fair Carrying
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total value amount
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
2014
Financial assets
Forward exchange
contracts - 1,096 - 1,096 - - - - 1,096 1,096
Commodity swap - 18,411 - 18,411 - - - - 18,411 18,411
- 19,507 - 19,507 - - - - 19,507 19,507
Forward exchange
contracts - (362) - (362) - - - - (362) (362)
Commodity swap - (472) - (472) - - - - (472) (472)
Commodity options - - - - - - - - - -
Loans and borrowings - - - - - - (988,276) (988,276) (988,276) (988,276)
- (834) - (834) - - (988,276) (988,276) (989,110) (989,110)
2013
Financial assets
Forward exchange
contracts - 3,101 - 3,101 - - - - 3,101 3,101
Commodity swap - 28 - 28 - - - - 28 28
- 3,129 - 3,129 - - - - 3,129 3,129
Forward exchange
contracts - (909) - (909) - - - - (909) (909)
Commodity swap - (1,472) - (1,472) - - - - (1,472) (1,472)
Commodity options - (1,953) - (1,953) - - - - (1,953) (1,953)
Loans and borrowings - - - - - - (900,000) (900,000) (900,000) (900,000)
- (4,334) - (4,334) - - (900,000) (900,000) (904,334) (904,334)
24.7 Fair value information (continued)
Policy on transfer between levels
The fair value of an asset to be transferred between levels is determined as of the date of the event or change in circumstances
that caused the transfer.
Level 1 fair value
Level 1 fair value is derived from quoted price (unadjusted) in active markets for identical financial assets or liabilities that the
entity can access at the measurement date.
Level 2 fair value
Level 2 fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for the financial
assets or liabilities, either directly or indirectly.
Derivatives
The fair value of forward exchange contracts is estimated by discounting the difference between the contractual forward price
and the current forward price for the residual maturity of the contract using a risk-free interest rate (based on government bonds).
Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest
cash flows, discounted at the market rate of interest at the end of the reporting period. For other borrowings, the market rate of
interest is determined by reference to similar borrowing arrangements.
Transfers between Level 1 and Level 2 fair values
There has been no transfer between Level 1 and Level 2 fair values during the financial year (2013: no transfer in either directions).
Level 3 fair value
Level 3 fair value is estimated using unobservable inputs for the financial assets and liabilities.
The following table shows the valuation technique used in the determination of fair value within Level 3, as well as the key
unobservable input used in the valuation model.
Financial instruments not carried at fair value
Inter-relationship
between significant
Significant unobservable inputs and fair
Type Valuation technique unobservable inputs value measurement
Loans and borrowings Discounted cash flows Not applicable Not applicable

& Marketing Bhd
25. Capital management
The Companys objective when managing capital is to maintain a strong capital base and safeguard the Companys ability to continue
as a going concern, so as to maintain investor, creditor and market confidence and to sustain future development of the business.
The Company monitors capital via carrying amount of equity as stated in the statements of financial position.
The debt-to-equity ratios as at 31 December 2014 and as at 31 December 2013 were as follows:
2014 2013
RM000 RM000
Total loans and borrowings (Note 10) 988,276 900,000
Total equity 760,023 861,791
Debt-to-equity ratios 1.30 1.04
There was no change in the Companys approach to capital management during the financial year.
26. Operating leases
Leases as lessee
2014 2013
RM000 RM000
Non-cancellable operating lease rentals are payable as follows:

Less than one year 1,509 1,227
Between one and five years 3,066 3,659
More than five years 4,603 2,554
9,178 7,440
The Company leases land under operating leases. The leases typically run for a period of 3 to 10 years, with an option to renew the lease
after the date. None of the leases includes contingent rentals.
27. Capital and other commitments
2014 2013
RM000 RM000
Capital expenditure commitments

Plant and equipment
Authorised but not contracted for 159,847 201,988
Contracted for but not provided for 48,927 63,140
208,774 265,128
Included in the above are non-contracted and contracted for the joint venture assets of the MPP amounting to RM1,053,000 and
RM12,031,000 respectively. (2013: non-contracted: RM2,447,000; contracted: RM32,934,000).
28. Other proceeding
The Company is defending an action brought by a transportation contractor in Malaysia. The action was filed in the month of October
2014 and served on the Company in early November 2014. The monetary claim against the Company amounts to approximately
RM41 million. The Company had reviewed those claims previously and determined the same as unsubstantiated and duly rejected the
claims. Based on legal advice, the Company has an arguable defense in resisting the claims and thus the Directors do not expect the
outcome of the action to have a material effect on the Companys financial position.
As the matter is currently being heard in court, the Directors are of the view that any further disclosure of any information about the
above matter would be prejudicial to the interests of the Company.
29. Related parties
Identity of related parties
For the purposes of these financial statements, parties are considered to be related to the Company if the Company has the ability,
directly or indirectly, to control or jointly control the party or exercise significant influence over the party in making financial and
operating decisions, or vice versa, or where the Company and the party are subject to common control or common significant influence.
Related parties may be individuals or other entities.
Related parties also include key management personnel defined as those persons having authority and responsibility for planning,
directing and controlling the activities of the Company either directly or indirectly. The key management personnel include all the
Directors of the Company, and certain members of senior management of the Company.
The Company has related party relationship with its holding company, significant investors, related companies and key management
personnel.
Significant related party transaction
In the ordinary course of business, the Company undertakes transactions with these related parties which include the sales and
purchases of products, which are carried out on commercial terms and conditions negotiated amongst the related parties, and the
sharing of services and facilities at cost apportioned on a mutually agreed basis.
Related party transactions have been entered into in the normal course of business under normal trade terms. The significant related
party transactions of the Company are shown below. The balances related to the below transactions are shown in Note 5, 10 and 11.
2014 2013
RM000 RM000
Purchases of petroleum products from a related company:

Petron Fuel International Sdn. Bhd. 1,401,627 1,345,728
Sales of petroleum products to related companies:

Petron Fuel International Sdn. Bhd. 2,417,700 2,666,518
Petron Oil (M) Sdn. Bhd. - 68,265
Air Philippines Corporation - 2,548
Philippines Airlines Inc. - 3,530

& Marketing Bhd
29. Related parties (continued)
Significant related party transaction (continued)
2014 2013
RM000 RM000
Sales of petroleum products to former related companies:

Air Philippines Corporation 29 -
Philippines Airlines Inc. 837 -
Central management, shared facilities and services costs with related companies:
Petron Fuel International Sdn. Bhd. and Petron Oil (M) Sdn. Bhd.
Charged from: 62,692 63,677
Charged to: (1,638) (1,680)
61,054 61,997
Central management, shared facilities and services costs with intermediate

and ultimate holding companies,
Petron Corporation
Charged from: 24 144
Key management personnel

Non-Executive Directors
Fees 222 175
Other short term employee benefits 89 72
311 247
30. Interest in joint operations
Details of the joint operations are as follows:-
Name of Other joint Principal place Principal Percentage of

joint operation operation parties of business activity ownership
2014 2013
Joint Venture Petronas Dagangan Port Dickson Construct, own and 20% 20%
Agreement for Multi- Berhad (PDB) and operate a multi-products
Products Pipeline and Shell Malaysia Trading pipeline (the MPP)
Distribution Terminal Sendirian Berhad
(SMTSB)
Joint Facilities Shell Refining Port Dickson Construction of the part 50% 50%
Operating Agreement Company (Operator) of the facilities relating to
the receipt and carriage
of crude and feedstocks
as common carrier
pipeline facilities.
31. Comparative figures
Certain comparative figures of the Company have been restated to conform with current years presentation. The restatements do not
have any material impact to the Statement of profit or loss and other comprehensive income. The effects are disclosed below:
2013
As
As previously
restated stated
RM000 RM000
Revenue 11,128,100 11,128,100

Cost of sales (10,947,771) (10,947,996)
Gross profit 180,329 180,104

Other operating income 76,927 56,656
Other operating expenses (182,333) (182,333)
Administrative expenses (24,205) (24,205)
Results from operating activities 50,718 30,222

Other income 3,280 (39,063)
Other expenses (64,651) -
Finance income 1,812 -
Finance costs (66,577) (66,577)
Loss before tax (75,418) (75,418)

The restatements do not have any material impact to the statement of cash flows. The effects are disclosed below:
2013
As
As previously
restated stated
RM000 RM000
Cash flow from operating activities

Finance costs 66,577 61,229
Change in trade and other payables and other financial liabilities 93,592 98,940
The above restatement does not have any impact on the earnings for ordinary shares of the Company.

& Marketing Bhd
32. Supplementary financial information on the breakdown of realised and unrealised profits or losses
The breakdown of the retained earnings of the Company at 31 December, into realised and unrealised profits, pursuant to Paragraphs
2.06 and 2.23 of Bursa Malaysia Main Market Listing Requirements, are as follows:
2014 2013
RM000 RM000
Total retained earnings of the Company

- realised 636,836 782,495
- unrealised (19,813) (63,704)
Total retained earnings 617,023 718,791
The determination of realised and unrealised profits is based on the Guidance of Special Matter No. 1, Determination of Realised and
Unrealised Profits or Losses in the Context of Disclosures Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, issued
by the Malaysian Institute of Accountants on 20 December 2010.
Statement by Directors
pursuant to Section 169(15) of the Companies Act, 1965
In the opinion of the Directors, the financial statements set out on pages 50 to 93 are drawn up in accordance with Malaysian Financial
Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia so as to give
a true and fair view of the financial position of the Company as of 31 December 2014 and of its financial performance and cash flows for the
financial year then ended.
In the opinion of the Directors, the information set out in Note 32 on page 94 to the financial statements has been compiled in accordance
with Guidance on Special Matter No.1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosures Pursuant
to Bursa Malaysia Securities Berhad Listing Requirements, issued by the Malaysian Institute of Accountants, and presented based on the
format prescribed by Bursa Malaysia Securities Berhad.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:

Ramon S. Ang
Y.Bhg. Dato Zainal Abidin Putih
Kuala Lumpur
Date: 10 April 2015

& Marketing Bhd
Statutory declaration
pursuant to Section 169(16) of the Companies Act, 1965
I, Myrna C. Geronimo, the officer primarily responsible for the financial management of Petron Malaysia Refining & Marketing Bhd,
do solemnly and sincerely declare that the financial statements set out on pages 50 to 94 are, to the best of my knowledge and belief,
correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the
Statutory Declarations Act, 1960.
Subscribed and solemnly declared by the above named in Kuala Lumpur in the Federal Territory on 10 April 2015.
Myrna C. Geronimo
Before me:
Commissioner for Oaths

Kuala Lumpur
Independent
auditors report
to the member of Petron Malaysia Refining & Marketing Bhd
(Company No. 3927-V) (Incorporated in Malaysia)
Report on the Financial Statements
We have audited the financial statements of Petron Malaysia Refining & Marketing Bhd, which comprise the statement of financial position
as at 31 December 2014, and the statements of profit and loss and other comprehensive income, changes in equity and cash flow for the year
then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 50 to 93.
Directors Responsibility for the Financial Statements
The Directors of the Company are responsible for the preparation of financial statements so as to give a true and fair view in accordance
with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 1965
in Malaysia. The Directors are also responsible for such internal control as the Directors determine is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with
approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures
selected depend on our judgement, including the assessment of risks of material misstatement of the financial statements, whether due to fraud
or error. In making those risk assessments, we consider internal control relevant to the entitys preparation of financial statements that give a
true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of the Company as of 31 December 2014 and of its
financial performance and cash flows for the year then ended in accordance with Malaysian Financial Reporting Standards, International
Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia.
Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report that in our opinion the accounting and other records
and the registers required by the Act to be kept by the Company have been properly kept in accordance with the provisions of the Act.

& Marketing Bhd
Independent auditors report
Other Reporting Responsibilities
Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The information set out in
Note 32 on page 94 to the financial statements has been compiled by the Company as required by the Bursa Malaysia Securities Berhad
Listing Requirements and is not required by the Malaysian Financial Reporting Standards or International Financial Reporting Standards. We
have extended our audit procedures to report on the process of compilation of such information.
In our opinion, the information has been properly compiled, in all materials respects, in accordance with the Guidance of Special Matter
No. 1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad
Listing Requirements, issued by The Malaysian Institute of Accountants and presented based on format prescribed by Bursa Malaysia
Securities Berhad.
Other Matters
This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 1965 in Malaysia
and for no other purpose. We do not assume responsibility to any other person for the content of this report.
KPMG Ow Peng Li
Firm Number: AF 0758 Approval Number: 266/09/15(J)
Chartered Accountants Chartered Accountant
Petaling Jaya, Selangor
Date: 10 April 2015

Information on
shareholdings
As at 23rd March, 2015.
Class of shares : Ordinary share unit (RM0.50)

Voting rights : One vote per share unit
Size of Holdings No. of Shareholders % of Shareholders No. of Units Held % of Issued Capital
Less than 100 306 3.483 12,039 0.004

100 - 1,000 2,713 30.882 2,428,619 0.899
1,001 - 10,000 4,790 54.524 19,120,050 7.081
10,001 - 100,000 901 10.256 24,647,397 9.128
100,001 - 13,499,999 74 0.842 25,612,832 9.486
13,500,000 and above 1 0.011 198,179,063 73.399
8,785 100.000 270,000,000 100.000
THIRTY LARGEST SHAREHOLDERS

As at 23rd March, 2015.
Name No. of Units Held % of Issued Capital
1. MAYBANK NOMINEES (TEMPATAN) SDN BHD 198,179,063 73.399

PETRON OIL & GAS INTERNATIONAL SDN BHD
2. UOB KAY HIAN NOMINEES (TEMPATAN) SDN BHD 2,271,500 0.841

EXEMPT AN FOR UOB KAY HIAN PTE LTD (A/C CLIENTS)
3. PUBLIC NOMINEES (TEMPATAN) SDN BHD 2,099,600 0.777

PLEDGED SECURITIES ACCOUNT FOR TAN HOCK CHENG (E-BMM)
4. JOHAN ENTERPRISE SDN. BHD. 1,660,000 0.614

5. LIM GAIK BWAY @ LIM CHIEW AH 1,194,400 0.442
6. NEOH CHOO EE & COMPANY, SDN. BERHAD 1,000,000 0.370
7. CIMSEC NOMINEES (ASING) SDN BHD 799,768 0.296
EXEMPT AN FOR CIMB SECURITIES (SINGAPORE) PTE LTD (RETAIL CLIENTS)
8. CIMSEC NOMINEES (TEMPATAN) SDN BHD 647,800 0.239

EXEMPT AN FOR CIMB SECURITIES (SINGAPORE) PTE LTD (RETAIL CLIENTS)
9. ALLIANCEGROUP NOMINEES (TEMPATAN) SDN BHD 600,000 0.222

PLEDGED SECURITIES ACCOUNT FOR JOHN DEVARAJ SOLOMON (8103033)
10. CITIGROUP NOMINEES (TEMPATAN) SDN BHD 565,000 0.209

PLEDGED SECURITIES ACCOUNT FOR DEVA DASSAN SOLOMON (473163)

& Marketing Bhd
INFORMATION ON SHAREHOLDINGS
THIRTY LARGEST SHAREHOLDERS (continued)
Name No. of Units Held % of Issued Capital
11. HLB NOMINEES (TEMPATAN) SDN BHD 559,400 0.207

PLEDGED SECURITIES ACCOUNT FOR DEVA DASSAN SOLOMON
12. KUMPULAN WANG SIMPANAN GURU-GURU 539,200 0.199

PLEDGED SECURITIES ACCOUNT FOR TAN HOCK CHENG
14. UOB KAY HIAN NOMINEES (ASING) SDN BHD 491,260 0.181
EXEMPT AN FOR UOB KAY HIAN PTE LTD (A/C CLIENTS)
15. DB (MALAYSIA) NOMINEE (ASING) SDN BHD 490,000 0.181

SSBT FUND SD4N FOR GOVERNMENT OF THE PROVINCE OF ALBERTA

PLEDGED SECURITIES ACCOUNT FOR INBAMANAY A/P M J ARUMANAYAGAM
17. YEOH PHEK LENG 474,000 0.175

PLEDGED SECURITIES ACCOUNT FOR SELINA SHARMALAR SOLOMON (8112136)
19. ENG GUAN CHAN SDN. BERHAD 453,800 0.168

20. CITIGROUP NOMINEES (TEMPATAN) SDN BHD 412,000 0.152
PLEDGED SECURITIES ACCOUNT FOR LEONG CHIN CHYE (472268)
21. LEE YEOW TENG 399,000 0.147

PLEDGED SECURITIES ACCOUNT FOR INBAMANAY A/P M J ARUMANAYAGAM (8061712)
23. JF APEX NOMINEES (TEMPATAN) SDN BHD 340,000 0.125

PLEDGED SECURITIES ACCOUNT FOR PARAGON PACIFIC VENTURES SDN BHD (MARGIN)
24. LIM SOO HIAN 335,000 0.124

25. KIM POH HOLDINGS SDN BHD 300,000 0.111
26. CITIGROUP NOMINEES (ASING) SDN BHD 289,204 0.107
EXEMPT AN FOR OCBC SECURITIES PRIVATE LIMITED (CLIENT A/C-NR)
27. NEW TONG FONG PLYWOOD SDN BHD 280,000 0.103

28. CHONG CHIEW TSHUNG 273,000 0.101
29. LIM SOO THEAN 256,500 0.095
30. CIMSEC NOMINEES (TEMPATAN) SDN BHD 246,000 0.091
CIMB BANK FOR DEVA DASSAN SOLOMON (MY1091)
216,942,995 80.349
SUBSTANTIAL SHAREHOLDER
As at 23rd March, 2015
1. MAYBANK NOMINEES (TEMPATAN) SDN BHD 198,179,063 73.399

PETRON OIL & GAS INTERNATIONAL SDN BHD
Top 10 properties
as at 31 December 2014
L.A. Description Acquisition Expiry Net Book

Tenure (sq m) of properties date date Age Value
FEDERAL TERRITORY
PETRON East-West Link (PBL#302815) F 3,185 Service 01.01.2004 11 6,615,957

Lot 18113, Lebuhraya Hubungan Timur-Barat, Station
56000 Wilayah Persekutuan
PETRON Sg. Besi West Highway (PBL#101086) F 5,669 Service 01.05.1995 20 6,230,649
Lot 26494, Mile 6.5 Jalan Sg. Besi Station
PETRON MRR2 Melati (PBL#305552) F 2,992 Service 01.01.2008 7 7,563,023

PT8085, SPK. Jalan Taman Melati Station
SELANGOR
PETRON Puncak Jalil (PBL#304551) L 4,047 Service 06.01.2004 09.06.2103 11 6,258,282

Lot PT 62357, Taman Puncak Jalil Station
47100, Puncak Jalil, Selangor
PETRON Jalan Kebun (PBL#101211) L 2,787 Service 01.12.1996 30.06.2099 19 5,626,927

Mile 3, Jalan Kebun Station
41400, Klang, Selangor
PETRON Bukit Sentosa (PBL# 101464) F 3,035 Service 22.07.1997 18 5,457,175

Lot 4844, Jalan Orkid 2B, Station
Seksyen BS2, Bukit Sentosa,
48300, Rawang, Selangor
PENANG
Bagan Luar Terminal F 44,024 Storage and Revalued in 55 11,514,518

Lots 95-125, 128, Lot 2327-2338 distribution 1982
Section 4, Town of Butterworth terminal
District of Seberang Perai Utara, Pulau Pinang
PETRON Jelawat (PBL#303054) L 3,693 Service 01.07.2003 18.08.2073 12 6,406,336

Lot 5371, Jalan Jelawat Station
Mukim 1, 13700,
Seberang Jaya, Pulau Pinang

& Marketing Bhd
top 10 properties
L.A. Description Acquisition Expiry Net Book

Tenure (sq m) of properties date date Age Value
NEGERI SEMBILAN
Lots 2645 & 2647, Mukim of Port Dickson F 1,631,970 Refinery, Revalued in 55 10,489,953
(Lot 2646 & 2648), 1926-1930, 1593-1595, 1805, storage and 1982
1838, 1803, 1836, 1757, 2278 & 1222 distribution
Mukim Port Dickson terminal
MPP and KVDT L 784,000 MPP/KVDT 01.03.2001 01.02.2100 14 19,942,205

Facilities
Notice of
Annual general meeting
NOTICE IS HEREBY GIVEN that the Fifty-Sixth Annual General Meeting of the Company will be held at the BALLROOM, Ground Level , GRAND
DORSETT SUBANG HOTEL, JALAN SS12/1, 47500 SUBANG JAYA, SELANGOR D.E, on Tuesday, June 16, 2015 at 2:00p.m., for the purpose of
transacting the following business:
1. To receive the Companys Audited Accounts for the year ended December 31, 2014 and the Directors and
Auditors Reports thereon. (Resolution 1)
2. (a) To elect Y. Bhg. Dato Zainal Abidin Putih, as Independent Director in compliance with Recommendation 3.3
of the Malaysian Code on Corporate Governance 2012. (Resolution 2a)
(b) To re-elect Mr. Ramon S. Ang, retiring in accordance with Articles 104 and 105 of the Companys Articles of
Association. (Resolution 2b)
(c) To re-elect Ms. Aurora T. Calderon, retiring in accordance with Articles 104 and 105 of the Companys Articles
of Association. (Resolution 2c)
3. To approve the payment of Directors Fees for the Independent Non-Executive Directors. (Resolution 3)
4. To appoint Messrs. KPMG as Auditors of the Company and to authorize the Directors to determine their
remuneration. (Resolution 4)
5. As Special Business to consider and, if thought fit, to pass the following Special Resolution:-
THAT the alteration, modifications, variations or additions to the Memorandum and Articles of Association of
the Company as set out per Appendix A attached to the Circular to Shareholders dated April 29, 2015 be and are
hereby approved; and
THAT the Board of Directors of the Company be and are hereby authorized to do all such acts, deeds and things as
are necessary in order to give full effect to the Proposed Amendments, with full power to assent to any conditions,
modifications and/or amendments as may be required by any relevant authorities. (Resolution 5)
6. To transact any other ordinary business of the Company.
NOTICE OF BOOK CLOSURE
NOTICE IS HEREBY GIVEN that:

For purpose of attendance at the Annual General Meeting: shareholders who are registered in the Register of Members and Record of Depositors
as at the close of business on June 5, 2015.
By Order of the Board,

Manoj Devadasan (LS0006885)
Company Secretary
Kuala Lumpur
April 29, 2015.
Note:
A Member of the Company entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy to attend and vote instead of the Member. A proxy need not be a
member of the Company and the provisions of Section 149(1)(b) of the Companies Act, 1965 shall not apply to the Company. Where a member is an exempt authorised nominee as defined
under the Securities Industry (Central Depositories) Act, 1991, that holds shares for multiple beneficiaries in one securities account (Omnibus Account), there is no limit on the number
of proxies it may appoint in respect of such Omnibus Account. The instrument appointing a proxy must be deposited at the Share Registrars office at Tricor Investor Services Sdn. Bhd.,
Level 17, The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur, not less than 48 hours before the time set for the Annual General Meeting.
On the day of the Annual General Meeting:
1. Registration counters (located outside the Ballroom at Grand Dorsett Subang Hotel) will be opened from 11:15a.m. and will close at 2:15p.m.
2. Refreshments will be served at the same place from 11:15a.m to 2:15p.m.
Statement Accompanying Notice
of Annual General Meeting
Directors standing for election/re-election
Executive Directors, Mr. Ramon S. Ang and Ms. Aurora T. Calderon, retire by rotation and are eligible for re-election pursuant to Articles 104 and
105 of the Companys Articles of Association.
The Board of Directors, following a report by the Nominating Committee (on its annual evaluation of the Boards performance), concluded
that both Mr. Ramon S. Ang and Ms. Aurora T. Calderon, in performing their duties as Directors, have met and/or exceeded expectations and
therefore (based on representations by the Nominating Committee) recommends to the shareholders that Mr. Ramon S. Ang and Ms. Aurora
T. Calderon be duly re-elected to the Board.
Y. Bhg. Dato Zainal Abidin Putih is an Independent Director of the Company. As Y. Bhg. Dato Zainal Abidin Putih has served on the Board for
more than nine (9) years, in compliance with Recommendation 3.3 of the Malaysian Code on Corporate Governance, he will retire. The Board
is however desirous of appointing Y. Bhg. Dato Zainal Abidin Putih for another term as an Independent Director. The Board is of the opinion
that Y. Bhg. Dato Zainal Abidin Putih, who is also the Chairman of the Board Audit & Risk Management Committee, has a wealth of experience
and knowledge about the Companys business and the oil & gas industry and can greatly contribute to the Board. Likewise, the Nominating
Committee following its annual evaluation of the Boards performance, concluded that Y. Bhg. Dato Zainal Abidin Putih, in performing his duties
as a Director, has met and/or exceeded expectations. The Board (based on representations by the Nominating Committee) recommends to the
shareholders that Y. Bhg. Dato Zainal Abidin Putih be elected to the Board as an Independent Director for another one year term.
Independent Director, Y. Bhg. Tan Sri Abdul Halim Ali, having exceeded nine (9) years in office, will retire at the conclusion of the Annual General
Meeting and in compliance with Recommendation 3.3 of the Malaysian Code on Corporate Governance, will not be seeking re-election at the
Annual General Meeting.
Proposed Amendments to the Memorandum and Articles of Association
The proposed amendments are intended to allow for the use of audio and audio-visual technology by Directors, both in terms of attendance at
and in conducting Board and Board Committee Meetings.
Mode of Voting
In line with the recommendation of the Malaysian Code on Corporate Governance 2012, and for the purpose of providing fair representation of
votes based on shareholding, voting at the Annual General Meeting shall be by Poll.
Details of Directors standing for election/re-election
(i) Profiles
The profiles of the Directors standing for election/re-election are set out in pages 26 and 27 of the Annual Report.
(ii) Statement of shareholdings

None of the Directors standing for election/re-election holds shares in the Company.
(iii) Family relationship

None of the Directors standing for election/re-election have any family relationship with any Director and/or major shareholder of the Company.
(iv) Conflicts of Interest

None of the Directors standing for election/re-election have any conflicts of interest with the Company.
(v) Conviction for offences (excluding traffic offences)

None of the Directors standing for election/re-election has been convicted for offences within the past ten (10) years.
PETRON MALAYSIA REFINING CDS Account No. of Authorised Nominee:
& MARKETING BHD

(Co. No. 3927-V)
PROXY FORM
I / We (Name of Company / Business / individuals full name
in Block Capitals (as per NRIC)), NRIC / Company No. (new) (old)
of (full address)
being a member / members of the Company, hereby appoint (full name of proxy)
NRIC / Company No. (new) (old)
of (full address)
or failing which the Chairman of the Annual General Meeting as my / our Proxy to attend and vote for me / us on my / our behalf at the
Annual General Meeting of the Company to be held on Tuesday June 16, 2015 at 2:00p.m. and at any adjournment thereof.
My / Our instruction to my / our proxy (on each Agenda Item as per the Notice of Meeting) are as follows:
Resolutions For Against

1. Received and adopt Companys Audited Accounts
2. (a) Elect Y. Bhg. Dato Zainal Abidin Putih
(b) Re-elect Mr. Ramon S.Ang
(c) Re-elect Ms. Aurora T. Calderon
3. Payment of Independent Directors Fees for 2015
4. Appoint KPMG as Auditors and authorize the Directors to determine their remuneration
5. Amendments to the Memorandum and Articles of Association
6. Any other business
(Please indicate an X in the spaces provided on how you wish your vote to be cast. If you do not do so, the proxy will vote or abstain
from voting at his / her discretion)
Signature / Common Seal
Number of shares held :
Date :

Notes:
A Member of the Company entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy to attend and vote instead of the Member. In the case
of a corporation, the Proxy Form must be executed under the corporations Common Seal or under the hand of an officer or attorney duly authorised. A proxy need not be
a member of the Company and the provisions of Section 149(1)(b) of the Companies Act, 1965 shall not apply to the Company. Where a member is an exempt authorised
nominee as defined under the Securities Industry (Central Depositories) Act, 1991, that hold shares for multiple beneficiaries in one securities account (Omnibus
Account), there is no limit on the number of proxies it may appoint in respect of such Omnibus Account. The instrument appointing a proxy must be deposited at the
Share Registrars office at Tricor Investor Services Sdn Bhd, Level 17, The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur, not less than
48 hours before the time set for the meeting.
First fold here
Affix
Stamp
Here
The Share Registrar of Petron Malaysia Refining & Marketing Bhd

Tricor Investor Services Sdn Bhd (118401-V)
Level 17, The Gardens North Tower,
Mid Valley City, Lingkaran Syed Putra,
59200 Kuala Lumpur
Then fold here

w w w. p e t r o n . c o m . m y
PETRON MALAYSIA REFINING & MARKETING BHD

(Company No. 3927-V)
Level 12A, Menara I & P1,

No. 46 Jalan Dungun, Damansara Heights,
50490 Kuala Lumpur, Malaysia
Tel: +603-20828400
Fax: +603-20828578
E-mail: [email protected]

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Changing The

2014 Annual Report & Accounts

Developing strategic partnerships in pursuit of growth opportunities;

Fostering an entrepreneurial culture that encourages teamwork,

Acting with professionalism, integrity, and fairness at all times;

Adhering to the strictest safety and environmental standards; and

2/3 Petron Malaysia Refining

retail LPG Commercial

1. Port Dickson Refinery, Negeri Sembilan More than

* PMRMB affiliate terminals

4/5 Petron Malaysia Refining

Changing the Landscape A strong retail

The completion of the rebranding and upgrading program is a significant milestone.

6/7 Petron Malaysia Refining

Loyalty Innovations In the future, we will

Enhancing our Supply Chain to Serve You Better We continue to invest

In spite of the challenges in 2014, we made significant investments, introducing

8/9 Petron Malaysia Refining

Safer and Brighter Journeys Moving forward, we

Towards a Common Vision With our programs

To make every visit to our stations even

10 / 11 Petron Malaysia Refining

Our Smiles Card was also rebranded as Petron Miles Privilege

At Petron, we make sure that we thank and reward our loyal

Meanwhile, our card solutions,

football fever, five Petron Miles cardholders won a trip to Brazil

Trusted brand of households and industries

12 / 13 Petron Malaysia Refining

A safe and reliable supply chain

We continued our Logistics Master Plan in 2014 to have a

Given the increasing demand of

In commercial trade, external challenges,

14 / 15 Petron Malaysia Refining

continuing improvements based on a

We also invested in a development

We likewise established the Petron

In line with governments mandate for cleaner fuels, we

Banking on our peoples strengths, we invested in programs

Sustainable Supply Chain

Under a robust and comprehensive risk-management strategy,

As mentioned earlier, we have completed our rebranding and

We have put in place business plans that focus on long

16 / 17 Petron Malaysia Refining

Also, in conjunction with PDRs 50th anniversary, we conducted

To show our commitment on environmental preservation, we

Environmental Management: A Brighter

In 2014, our water conservation efforts resulted in the reduction

motorists, especially the younger

Student motorists were also educated

Safety & Security: Our core advocacies

Meanwhile, in support of the Royal Malaysia Polices (RMP)

In 2014, we again partnered with the Malaysia Road Safety

18 / 19 Petron Malaysia Refining

Through our Vision Petron Art & Painting

Social responsibility: Playing a role in

For instance, we have been a staunch supporter of the Human

20 / 21 Petron Malaysia Refining

Sales volume Total throughput

Capital Expenditure Total assets employed