90 cents x 3.3 bil shares = 2.97 bil dividend payout
Latest financial result balance sheet total bank and cash = 2.9 bil

Wow, almost give all the cash to shareholder.

Downside, result not as good, and those lease airplanes come back to balance sheet due to new accounting rule on leasing.

One of reason of the decline is Hyflux factor.

Using the last 8 quarter of profit figure would easily skew the entire model calculation as we know refiners are enjoying extra ordinary profit margin over the last year or so.

High crude oil price actually may not favourable for refiner.

Refiner profit solely come from crack spread.
1. Crude oil price 40, crack spread 10
2. Crude oil price 70, crack spread 10.

1) is more favourable, as profit margin is better, lesser capital outlay needed to buy raw material due to cheaper raw material.

Unless the crack spread is always following crude oil in term of %, which we know it is not, but based on market demand and supply.

The volume is extra ordinary high.

The selling activities is pretty "fierce" since the afternoon session started, throw all the way to 16

This is the first time since the run up from 8 to 19, its price swing like that.

According to previous news, Malaysia set a timeline for Euro 4 to be introduced by 1 Oct 2018.

How is the effect if upgrading delay beyond the dateline?

Tax allowance is not tax rebate.

It reduces against the taxable income.

Share buy back generally is through open market.

RM11?
It should open more than RM12 and potential hitting RM13, and should be more than Petron price.

Prospect of earning for near term up to first half 2018 should be good.

But after that, market may be starting to wary about its turnaround upgrade that potential put a big dent on 2018 result, especially the company has mentioned potential delay of the project as well.

So it may be good to profit take around 1Q 2018, by then price may be in the region of RM15~20 already.

For loan repayment, if the loan is not yet due, there is no need to repay until it is due.
Cash needs to be conserved to be used for the upgrade which is expected to cost about 700 mil plus

Very good Q result, probably will gap up a few RM on Monday. May be limit up as well.
Rm15-20 achievable.

Result should be good until next year major upgrade.

2 slight negative comment from Q report.
a) in term of refining margin going forward though that company expected to be lower in near term.
So this Q sterling result may not repeatable in the next Q.

b)EURO4 upgrade, which company expected a delay, and whether there is any potential impact.

Turnaround is expected 2.5 months accordingly to the report.
So for 2018 we may see a quarter with high negative figure due to the upgrade.

Very good cashflow generation, that able to fund the upgrade without any need of further borrowing.