Quantcast
Latest Stories

Petron net profit down 12% despite 50% jump in revenues

By

Petron Corp., the country’s biggest oil refiner and retailer, posted a 12-percent decline in its consolidated net income to P2.2 billion in the first quarter this year from P2.5 billion a year ago due mainly to lower margins.

This was despite a 50-percent surge in revenues to P112 billion during the quarter from P74.7 billion in 2012, the company said in a disclosure to the Philippine Stock Exchange Monday.

Petron explained that its revenues were boosted by the consolidation of Petron Malaysia starting in the second quarter of last year. This accounted for the 66-percent increase in the company’s total sales volume to 20 million barrels in the first quarter of 2013 from only 12 million barrels a year ago.

Earnings, however, fell “due to lower margins as reference prices for both crude oil and finished products dropped during the current period, causing a drastic drop in retail prices against higher costing inventory.”

According to Petron, Dubai crude averaged only $108.19 a barrel in the first three months of 2013 compared to $116.45 last year.

In the Philippines, Petron said it continued to enhance its leadership position by posting a 7-percent sales volume growth in the strategic but highly competitive retail sector. This growth was driven largely by the company’s network expansion program, which increased the company’s presence in underserved areas.

The oil firm operates the biggest network in the industry with 2,070 service stations—bigger than its two closest competitors combined, thus allowing Petron to sustain its leadership with a market share of more than 38 percent.

In Malaysia, Petron has converted 125 of the 550 service stations to the Petron brand. The rebranded stations feature improved facilities and personalized services. The re-branding program is expected to be completed 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,” said Petron chair and CEO Ramon S. Ang.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , Petron Corp. , profitability

  • NoWorryBHappy

    Petron net profit down 12% despite 50% jump in revenues
    :
    You have been warned.
    America is starting to flood the markets with cheap oil extracted from shale.



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Henares on Pacquiao bashing: I did not start this
  • Drilon, Nancy Binay urge Filipinos to strengthen faith
  • ‘Yolanda’ toll now at 6,300 – NDRRMC
  • ‘Mom, I love you,’ says text from student on sinking ferry
  • Moderate earthquake jolts southern Iran
  • Sports

  • Power Pinays smash India in Asian Women’s Club volleyball opener
  • PH youth boxers off to stumbling start in AIBA World tilt
  • Durant has 42, Thunder beat Pistons 112-111
  • Walker leads Bobcats over Bulls in OT, 91-86
  • Man City slips further out of title contention
  • Lifestyle

  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • This is not just a farm
  • Clams and garlic, softshell crab risotto–not your usual seafood fare for Holy Week
  • Moist, extra-tender blueberry muffins
  • Entertainment

  • Will Arnett files for divorce from Amy Poehler
  • American rapper cuts own penis, jumps off building
  • Jay Z to bring Made in America music fest to LA
  • Why Lucky has not bought an engagement ring for Angel
  • Derek more private with new girlfriend
  • Business

  • Asia stocks fail to match Wall Street gains
  • Fired Yahoo exec gets $58M for 15 months of work
  • PH presses bid to keep rice import controls
  • PSEi continues to gain
  • Number of retrenched workers rose by 42% in ’13
  • Technology

  • Netizens seething in anger over Aquino ‘sacrifice’ message
  • Filipinos #PrayForSouthKorea
  • Taylor Swift tries video blogging, crashes into fan’s bridal shower
  • DOF: Tagaytay, QC best at handling funds
  • Smart phone apps and sites perfect for the Holy Week
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Syria most dangerous country for journalists, PH 3rd—watchdog
  • Japan says visa-free entry still a plan
  • First Fil-Am elected to Sierra Madre, Calif. city council
  • UC Irvine cultural night to dramatize clash of values in immigrant family
  • Filipino sweets and info served at UC Berkeley Spring Fest
  • Marketplace