Petron’s Malaysia operations to drive growth

MANILA, Philippines — Petron Corp.’s Malaysian business is expected to drive its overall operations on the back of government support and expansion projects.

Petron president and chief executive officer Ramon Ang said the company’s Malaysian operations is more stable than its Philippine counterpart.

“The Malaysian government really allows you to maintain a certain margin…Malaysian operations is [better], or more stable for us,” he said.

In the first quarter of the year, Petron reported a net income of P1.3 billion, lower 77.5 percent from P5.8 billion in the same period last year. Of the total net earnings, Petron Malaysia accounted for P1.2 billion.

Its Philippine operations took a hit from the second phase of Tax Reform for Acceleration and Inclusion (TRAIN) Act and the rising crude prices during the period.

In its annual report, Petron reported it was chosen as one of the Malaysian government’s fuel suppliers alongside Petronas and Shell, which it considers a major milestone.

Ang said Petron participated in the government bidding to supply fuel to government vehicles through indent cards.

“This underscores our commitment to nation-building as well as the superior quality of our products,” he said.

“As the nation’s reliable fuel partner, we also continued to power industries essential to the country’s growth through our commercial business,” Ang said.

In terms of its aviation business, Petron said it serves a range of multinational and regional carriers at the Kuala Lumpur International Airport.

To cater to growing demand, the oil firm said it invested in new facilities to enhance its aviation business.

For its liquefied petroleum gas (LPG) business, Petron Gasul expanded its dealer network by offering LPG at service stations, an industry first in Malaysia. This allows the company to offer products and services under one roof.

Meanwhile, Petron is spending $100 million to complete the diesel hydrotreater (DHT) project in Port Dickson Refinery by 2020, which will allow it to produce Euro 5 diesel.

“We initiated the DHT modification worth $100 million to comply to the environmental rules of Malaysia,” Ang said. “We will be able to complete the project next year, in time for the regulation.”

The DHT project follows the upgrade of its product terminals to comply with the B10 biodiesel and U97 E4M requirements in line with the Malaysian government’s thrust of providing cleaner and more environment-friendly fuels to consumers.

In the next three years, the oil firm said it is opening 100 service stations in Malaysia, alongside the 200 new stations in the Philippines.