Petron pumps up Jan-Sept profit

MANILA, Philippines — Petron Corp. said it expects 2017 to be another banner year after robust sales volume pushed net earnings higher by 58 percent as of end-September.

The country’s largest refining and marketing oil firm reported a consolidated net income of P11.8 billion in the nine months ending September compared with P7.4 billion last year.

This was driven by the continued focus on high-value segments and sustained sales volumes from its Philippine and Malaysian operations, Petron said.

“We will definitely have another banner year as we reap the benefits of our strategic programs. These have given us more diverse income streams and improved profitability,” Petron chairman Eduardo Cojuangco Jr. said.

For the nine-month period, combined sales volumes hit 80.2 million barrels – slightly higher than the 79.3 million sold in the same period last year.

Petron said sales volumes would have been higher if not for scheduled maintenance. Its Bataan refinery was running on maintenance mode below optimum capacity for 35 days in the second quarter and 18 days in the third quarter.

Meanwhile, Malaysia operations grew volumes by nine percent in the period under review.

In the retail segment, Petron’s consolidated volumes grew eight percent due to continuing network expansion in both markets, coupled with innovative loyalty programs.

Lubricant sales expanded 15 percent as the company’s high-performance engine oils remain a top choice among motorists.

Gasoline and Jet A-1 likewise saw double-digit volume increases at 15 percent and 11 percent, respectively, while its petrochemical sales grew 24 percent over the period.

Last year, Petron commissioned its upgraded refinery in Bataan, significantly increasing its fuels production, as well as petrochemicals to fuel the country’s economic growth.

Consolidated sales revenues for the first nine months of 2017 reached P313.5 billion, up 27 percent from 2016’s P247.8 billion.

Operating income grew 31 percent to P22.1 billion versus the previous year’s P16.8 billion.

Moving forward, Petron is studying the next phase of its refinery upgrade and expansion aimed at increasing production of high-margin fuels and petrochemicals.

The company is also expanding its logistics and retail network in both countries.

“As the only Filipino-owned oil major, Petron is committed to making substantial investments to support the government’s call for fresh investments, new jobs, additional infrastructure, and stronger public-private partnerships,” Cojuangco said.

In 2016, Petron’s net income amounted to P10.8 billion, up from P6.3 billion in 2015.

It attributed the robust performance to record sales volume, operational efficiency with increased crude run at higher product yields, and effective risk management.