Petron Corp. posted a 103-percent surge in net income to P6 billion in the first half from the previous year’s P2.96 billion, driven largely by a surge in export sales.
In a disclosure to the Philippine Stock Exchange, Petron also reported a 17-percent growth in sales revenues to P134.9 billion in the first six months from P115.4 billion a year ago.
According to Petron, the figures were pushed by the 54-percent surge in the export sales (of petrochemical feedstock and fuel products) to 3.14 million barrels. Local sales of high-margin petrochemical feedstock, namely propylene, benzene, toluene and mixed xylene, of up to 1.7 million barrels during the first semester also helped boost margins.
The increases, however, were partly offset by the drop in domestic volumes as reduced motorist activity due to bad weather dampened local demand.
Despite the drop, Petron said it remained the industry leader with a 38-percent share of the market, continuing to lead in the retail, liquefied petroleum gas (LPG) and industrial market segments.
“While Petron continues to show strong results from its core businesses, we are now reaping the benefits from the production of higher-margin petrochemical feedstock,” said Petron chairman and CEO Ramon S. Ang.
“We are seeing more potential from this business, which is why plans are underway to scale up our refining operations and further increase Petron’s footprint in the domestic and international markets,” Ang explained.
Petron is embarking on a P75-billion upgrade of its Bataan refinery over the next few years to increase its capacity from the present 180,000 barrels a day. As it is, the Bataan refinery is considered the biggest and most modern refining and petrochemical complex in the country.
Called the Refinery Expansion Project, or RMP-2, the upgrade will ensure the country’s supply security as it will give Petron’s refinery the flexibility to “digest” a wider array of crude oil types from various supply points.