OIL GIANT Petron Corporation reported on Tuesday a consolidated net income of P7.4 billion for the first three quarters of 2016, up 47 percent from the P5.1 billion posted in the corresponding period last year on strong demand for its fuels and improved efficiencies.
Petron said Philippine and Malaysian sales volumes grew by a combined 6 percent to 78.2 million barrels in the first nine months from 73.6 million barrels sold in the same period last year.
It said both markets saw substantial growth across all major business segments, namely reseller, industrial, LPG, and lubricants.
The increase in sales volume partially offset the drop in sales revenue due to lower product prices, Petron said.
It said consolidated revenue dropped 11 percent to P247.8 billion versus P278.3 billion in the same period in 2015.
Domestic sales in the Philippines grew by 3.3 million barrels or 10 percent, to 36.4 million barrels boosted by increased industrial diesel sales, retail gasoline volumes, high demand from the aviation sector, and growing LPG consumption from households.
Meanwhile, it said its Malaysian operations continue to exhibit robust growth, with an 8 percent increase in domestic sales over the period.
“We are confident that we can substantially increase our profits in 2016 compared to last year as demand for fuels remains strong. Strong demand combined with strategic programs we have successfully executed means a higher growth trend for Petron over the long-term,” Petron president and CEO Ramon S. Ang said in a statement.
Operating income in the nine months grew 23 percent to P16.8 billion.
Petron recently issued and listed P20 billion in fixed-rate bonds to retail investor, proceeds of which were used to repay existing U.S. dollar denominated debt.
One of its major projects is its retail network expansion program. Petron currently has nearly 2,250 service stations nationwide, larger than its three closest competitors combined.
In Malaysia, Petron continues to expand its current network of about 570 retail outlets by building more service stations, particularly in underserved markets.
Petron is also producing more high-value fuels and petrochemicals after the commissioning of its $2 billion refinery upgrade project at the start of the year. Costs have likewise gone down since its 180,000 barrels-per-day Bataan refinery can now process cheaper crudes. Petron’s Bataan Refinery is one of the most advanced facilities in the region.
In October, Petron locally produced and launched the country’s first Euro 5 standard fuel. Petron Malaysia is also a leader in fuels innovation with the recent roll-out of the Turbo Diesel Euro 5. Aberon