Petron earnings surge 56%

MANILA, Philippines - Oil refining giant Petron Corp. ended the first half of 2017 with a 56 percent jump in net earnings as it sustained sales volume growth, despite inventory losses and maintenance shutdown of its refinery during the period.

Petron said in a statement its consolidated net income reached P8.2 billion in the January to June period, up from P5.3 billion posted in the same period last year.

The solid performance was driven by the company’s deliberate focus on more profitable segments and improved refinery production yields, while sustaining sales volumes coming from a record-breaking year in 2016, it said.

This as the company incurred crude oil inventory losses and scheduled a 45-day maintenance shutdown of its refinery as part of its 10-year inspection program.

“With our upgraded refining capabilities, we derived more value and produced more profitable products. This is strongly complemented by our extensive expansion efforts in both our logistics and retail businesses,” Petron president and chief executive officer Ramon Ang said.

The company said total sales volumes for both Malaysia and the Philippines reached 52.9 million barrels, slightly higher than the previous record of 52.6 million in 2016.

It said consolidated sales revenues increased 28 percent to P207 billion in the first six months of the year from P161.9 billion over the same period in 2016. This included petrochemical sales, which surged 78 percent year-on-year.

Operating income stood at P14.6 billion, a 27 percent improvement from the previous year’s P11.5 billion.

Ang said the company remains confident about its prospects for the year, underpinned by the country’s strong economic performance.

“With the country’s economy growing at a rapid pace, we are expanding our facilities not just for the needs of today but also to ensure a reliable and continuous supply of quality fuels for tomorrow. Our expansion projects mean more employment opportunities and economic activity, which help in nation-building,” he said.

Petron has a retail network of almost 2,900 service stations, of which over a fifth are located in Malaysia. It has dozens of service stations in various stages of development in Malaysia and the Philippines.