Petron net surges by 501%

Petron Corp. posted P1.1 billion in net profit for the first half of 2013, up by 501 percent from P183 million in the same period in 2012.

In a disclosure to the Philippine Stock Exchange, Petron reported a first-semester revenue of P218.8 billion, up by 13 percent from year-ago level.

The country’s leading oil refining and marketing firm said its sales volume rose by 22 percent to 39.8 million barrels of petroleum for the period from 32.5 million barrels in 2012. Petron attributed this to the full consolidation of its Malaysian operations and the stronger performance of key domestic segments.

A sudden drop in commodity prices in April and May made the second quarter of 2013 “challenging,” Petron said. Similar to other downstream oil companies in the region, Petron said it had experienced drop in margins following the hefty decline in Dubai crude prices to an average of $101 per barrel in the second quarter from $108 in the first quarter.

Petron said it had consistently delivered volumes “despite aggressive competition” through the expansion of its retail network. The company now has 2,100 service stations, larger than the networks of its two major competitors combined. Petron remained the No. 1 oil company in the Philippines with a 38-percent share of the market as of March 2013.

“Even as the short-term business outlook for the oil industry remains volatile, Petron focused on completing major projects aimed at boosting profitability over the long-term,” Petron chairperson and CEO Ramon S. Ang said.

The company said it was close to completing its biggest investment in its 80-year history – the $2 billion Refinery Masterplan Phase 2 (RMP-2) at its 180,000 barrel-per-day Bataan refinery.