Petron 2012 sales up 55%

Petron Corp. said its revenue grew by 55 percent to P424.8 billion in 2012 from its Philippine and Malaysia operations, on higher domestic sales and the consolidation of Petron Malaysia in the second quarter of the year.

The country’s leading oil refining and marketing company said its consolidated income reached P2.3 billion, lower than the P8.5 billion net income in 2011.

Even so, the company called the modest gain was a “turnaround” considering a P2.1-billion loss in the second quarter of 2012. During that period, Petron said, volatility in crude and product prices resulted in depressed margins.

“Despite the challenging business environment, the company remained focused on completing its major capital programs aimed at taking it to the next level of profitability and growth,” Petron said.

Petron ended 2012 with more than 2,000 service stations in the Philippines, which the company said was the largest retail network in the local industry. Petron said its network was more extensive than its two closest competitors combined.

Domestic sales volume increased in 2012 by nearly 8 percent to 44.5 million barrels with strong demand coming from all major sectors (i.e. reseller, industrial, and LPG). The company has a market share of about 39 percent in 2012.

Petron’s $2-billion Refinery Master Plan—2 (RMP-2) remains on schedule with over 50 percent completed as of 2012. RMP-2 is targeted for completion by mid-2014 and operational by the 4th quarter of the same year. RMP-2 allows the conversion of all negative margin fuel into higher value fuel products such as gasoline, diesel, and various petrochemicals. The upgrade also improves the supply security of the country and would make Petron capable of locally producing more environment-friendly and superior fuels.

“Despite the volatility in international oil markets, we continued to be on investment mode and forged ahead with our game-changing initiatives that will give Petron a decisive edge over its competitors in the long-term,” Petron chair and CEO Ramon S. Ang said. “We are keen on completing our major projects that will not only benefit the company but the entire country as well.”

The company has also made inroads in Malaysia with the rebranding of nearly 100 service stations to the Petron brand, barely a year after its acquisition of ExxonMobil’s downstream business. The converted stations feature improved facilities and personalized services. More importantly, the Petron stations embody what the brand stands for —innovative products, excellent service, successful partnerships built on trust and caring for customers. Riza T. Olchondra