Petron’s net income soars 55% to P5.3b

Oil distributor Petron Corp. said net income in the first half jumped 55 percent to P5.3 billion from P3.4 billion a year ago, on higher sales volume which offset lower petroleum prices.

Petron said consolidated sales revenues dropped 13 percent in January to June to P161.9 billion from P186.1 billion a year earlier, as Dubai crude price softened to $36.80 per barrel from $56.59 a barrel last year.

Petron said in a statement despite weaker oil prices and reduced product cracks, or the differential between the prices of crude oil and finished products, margins were sustained by its $2-billion Bataan refinery upgrade which substantially increased production of higher value white products and petrochemicals.

Petron's operating income increased 29 percent to P11.5 billion from last year's P8.9 billion.

Petron continues to deliver strong results amid the prolonged slump in oil prices. This is a direct effect of much improved operational productivity and the expansion of our markets, Petron president Ramon Ang said.

We are well-positioned to sustain our performance throughout the year. Ang said.

Petron attributed the strong performance to a surge in sales volumes supported by aggressive network expansion, improved production and cost efficiencies and a deeper focus on customer programs.

The company said consolidated sales volumes in the Philippines and Malaysia increased 9 percent to 51.8 million barrels in the first six months from 47.4 million barrels sold in the same period in 2015.

Petron saw robust growth across major businesses including retail, industrial, LPG and lubricants in both countries.

Industrial sales grew 14 percent in the Philippines alone with increased participation in key industries such as aviation and power-generation.

Lubricants and LPG businesses posted an 18-percent and 12-percent increase, respectively, with higher demand from the transport sector and households.

Petron currently owns 2,230 service stations with hundreds more in various stages of development.

Petron Malaysia's products and services showed a 9-percent increase in domestic sales as the company, with its Fuel Happy campaign, continues to underscore customer satisfaction, innovative products and rewarding relationships.

Petron is the largest oil refining and marketing company in the Philippines with a 180,000-barrel-per-day refinery in Bataan. It is also a leading player in the Malaysian market.

It has a combined refining capacity of 268,000 barrels a day and produces a full range of world-class fuels and petrochemicals.

Source: The Standard