Petron net income surged to P6.3B in 2015

Petron Corp. reported a consolidated net income of P6.3 billion in 2015, more than double the P3 billion earned the previous year, driven by a surge in sales volumes, better refining margins and effective risk management.

This, despite the slump in global oil prices.

The country’s leading oil refining and marketing company said all its business segments in the Philippine and Malaysian operations contributed to volume growth as combined sales volumes reached 98 million barrels in 2015.

That is a 13-percent growth from 2014’s 86.5 million.

In its home market, the Philippines, Petron increased sales with strong demand coming from Reseller, Industrial, and LPG segments.

Volumes from service station sales grew by 11 percent while LPG grew another 16 percent over the period compared to 2014.

In Malaysia, the company’s rebranding and upgrading program reaped dividends. Retail gasoline volumes, for instance, grew by 11 percent.

Even with robust volume growth, 2015 registered lower sales revenue of P360.2 billion, a 25-percent decrease from P482.5 billion the previous year due to a near 50-percent drop in oil prices.

Benchmark Dubai crude averaged $51 per barrel last year from $97 the previous year. Dubai is currently averaging around $30 per barrel.

The company’s performance was bolstered by proactive risk management to mitigate the impact of inventory losses and currency depreciation.

Despite weak oil prices in 2015, the differential between crude and finished products remained strong and the mix of higher value products improved, supporting refining margins.

As a result, Petron’s operating income reached P18.1 billion last year, a 138-percent increase from only P7.6 billion in 2014.

“Petron beat expectations and posted solid results last year. Low domestic prices and continued growth in the Philippine and Malaysian economies, coupled with our strategic investments, enabled us to reach record-breaking sales volumes,” Petron president Ramon S. Ang said.

“We are right where we want to be as we continued to grow our business profitably and sustainably,” he added.

Petron’s sales performance in the Philippines was supported by the initial test run and commissioning of its $2-billion refinery upgrade project in 2015. In preparation for full operations this year, Petron’s refinery has hit a utilization rate of nearly 90 percent with an average run of nearly 160,000 barrels per day in the first two months of 2016.

The company also continues to aggressively expand its service station network in both countries to push more profitable domestic sales.

As of end 2015, there are over 2,200 stations in the Philippines and another 570 in Malaysia.