Petron net profit rises 30% to P14.1B » Manila Bulletin Business

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Sunday, March 18, 2018

Petron net profit rises 30% to P14.1B


By James A. Loyola

Petron Corporation, the Philippines’ leading oil refining and marketing company, reported a 30 percent jump in consolidated net income to P14.1 billion last year from earnings of P10.8 billion in 2016.

In a disclosure to the Philippine Stock Exchange, Petron said its consolidated sales revenue rose 26 percent to P434.6 billion in 2017 from P343.8 billion in the previous year while operating income increased by 16 percent to P27.6 billion.

“This was fueled by strong sales volumes and continued focus on high-value segments in its Philippines and Malaysia operations,” Petron said.

Coming from a record-breaking 105.7 million barrels sold in 2016, consolidated sales volumes grew to 107.8 million in 2017.

Consolidated retail volume grew by 8 percent as the company continued to expand in this highly competitive segment, breaching the 3,000 service station count during the year.

Sales of high-margin products such as gasoline, Jet A-1, and lubricants grew by double digits in 2017. Lubricants such as Blaze Racing helped grow this business by 15 percent.

The company added that sales would have been much higher if not for scheduled maintenance turnarounds in both its 180,000 barrel-per-day Bataan refinery and its 88,000 barrel-per-day Port Dickson refinery in Malaysia.

Petrochemicals (such as propylene) provided good margins and additional revenue as volumes grew by 9 percent. The company is also expanding its logistics and retail network in both countries to meet more demand.

“We were able to capture increased fuel demand with the robust growth in the Philippine and Malaysian economies,” Petron President and CEO Ramon S. Ang said.

He added that, “underpinned by large scale infrastructure projects, we see strong demand growth in both markets over the medium-term and this bodes well for our business.”

“Even with our strong presence backed by our unmatched logistics and production capabilities, we are committed to invest more and help secure the country’s energy needs,” noted Ang.

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