Petron Corp., the bigger of the two oil refineries in the Philippines, said net profit in the the first nine months of 2016 jumped 47 percent to P7.4 billion from P5.1 billion year-on-year on higher sales volume amid strong demand and more efficient operation.
“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 Ramon Ang said.
Petron’s Philippine and Malaysian sales volumes grew a combined six percent to 78.2 million barrels in the first nine months from 73.6 million sold in the same period in 2015.
Both markets saw substantial growth across all major business segments, namely reseller, industrial, LPG and lubricants.
The company said the increase in sales volume partially offset the drop in sales revenue due to lower product prices.
Consolidated revenue declined 11 percent to P247.8 billion during the period from P278.3 billion a year ago.
Domestic sales rose 3.3 million barrels, or 10 percent, to 36.4 million, boosted by increased industrial diesel sales, retail gasoline volumes, high demand from the aviation sector and growing LPG consumption from households.
Petron’s Malaysian operations exhibited robust growth with an 8-percent increase in domestic sales on year.
Operating income surged 23 percent to P16.8 billion in the first nine months.
Petron officials earlier predicted the company’s operating income might hit P20 billion this year while net income could increase by at least 30 percent for the full year 2016. Petron reported a net income of P6.3 billion in 2015.
Petron recently issued and listed P20 billion in fixed rate bonds to retail investors. The issue was twice oversubscribed over the base offer and was priced at the tight end of the marketing range.
Petron plans to use proceeds from the bonds mainly to repay existing US dollar denominated debt.
Petron has 2,250 service stations nationwide, larger than its three closest competitors combined. In Malaysia, the company continues to expand its current network of about 570 retail outlets by building more service stations, particularly in underserved markets.
Petron is producing more high-value fuels and petrochemicals after the commissioning of its $2-billion refinery upgrade project in Bataan at the start of the year.
Costs have likewise gone down since its 180,000 barrels-per-day Bataan refinery can now process cheaper crude.
Petron locally produced and launched the country’s first Euro 5 standard fuel last month. Blaze 100 Euro 5 is much cleaner than standard Euro 4 fuels and promises optimal power, exceptional engine cleanliness, better fuel economy, and lower emissions.
Petron Malaysia is also a leader in fuels innovation with the recent roll-out of the Turbo Diesel Euro 5.