Petron revenues rise to 112 billion pesos in first quarter

Petron Corp., the largest oil company in the Philippines reported that its revenues rose by 50% to 112 billion peos (US$34.5 billion) in the first quarter, from 74.7 billion pesos (US$23 billion) in the same period of 2012, boosted by the consolidation of Petron Malaysia starting in the second quarter of 2012.
Total sales volume increased by 66% to 20 million barrels from 12 million barrels in the first quarter, with Petron Malaysia accounting for the increase.
Consolidated net income of 2.2 billion peos (US$677 million) was lower than the 2.5 billion pesos (US$ 769 million) posted last year due to lower margins for both crude oil and finished products which dropped during the current period, causing a drastic drop in retail prices against higher cost inventory. Dubai crude averaged US$116.45/barrel in the first three months of 2012 compared to US$108.19/barrel over the same period in 2013.
In the Philippines, Petron continued to enhance its leadership position by posting a 7% sales volume growth in the strategic but highly competitive retail sector. The growth was driven by its network expansion program, which increased the company’s presence in underserved areas.
Currently, Petron operates the largest network in the Philippines, with 2,070 service stations, bigger than its two closest competitors combined. Petron sustained its leadership with more than a 38% marketshare.
The company has also converted 125 of 550 service stations in Malaysia to the Petron brand. The rebranded stations feature improved facilities and personalized services. The re-branding program is expected to be complete by 2014.
“Petron is in a period of unprecedented growth and expansion. The projects we set out to do a few years ago are nearing completion and with it, the prospects of a better future for both the company and the country,” Petron Chairman and CEO Ramon S. Ang said.
The company’s US$2 billion Refinery Master Plan Phase 2 (RMP-2) is already 70% complete as of March 2013 and will be finished by mid-2014. RMP-2 will significantly increase production of gasoline, diesel fuel, and petrochemicals at Petron’s Bataan Refinery. RMP-2 will enhance the country’s fuel supply security since it gives more flexibility to refine crude oil from various non-traditional sources. More importantly, Petron will be capable of locally producing fuels that meet the more stringent Euro 4 standard.
(May 6, 2013)