Petron Corp. on Thursday said consolidated net income reached P2.8 billion in the first three months of 2016, up more than 10 times from P257 million a year earlier.
Its comprehensive net income was boosted by higher sales from local and regional operations.
“We are now experiencing the full benefits of our strategic programs, and we are gaining momentum as we reach new levels of growth and profitability,” Petron President Ramon S. Ang said.
“We are definitely on track to deliver a stronger performance this year,” he added.
Consolidated sales volume reached 25.3 million barrels, up 9 percent from 23.2 million in the same comparable period. Sales volume was up across all major business segments in the Philippines and Malaysia.
In Malaysia, increasing confidence in the Petron brand translated to more industrial customers. This segment posted a 17 percent growth year-on-year. Service station volume improved, supported by the upgrades and network expansion programs.
The increase in sales volume partially offset the drop in oil prices, leading to lower sales revenue.
The company noted sales revenue dropped 11 percent at P77 billion from P86.7 billion.
Operating income nearly doubled to P5.8 billion from P3 billion.
Despite weak oil prices in the first few months of 2016, the margins between crude and finished products remained strong, supporting refining margins.
Petron’s $2-billion refinery upgrade also supported margins with higher utilization of the 180,000 barrel-per-day capacity, increased production of higher-value fuels and petrochemicals, and the use of cost-efficient heavier crudes.
Petron will continue to focus on network expansion to build over 250 new service stations in the Philippines and Malaysia this year.
Currently, the company operates nearly 2,800 Petron stations in both countries.
Petron is the largest oil refining and marketing company in the Philippines, and is a leading player in the Malaysian market.