Seaoil hits record income in ’15

Seaoil Philippines Inc. said 2015 was a banner year for the company as it posted a record income on the back of improved sales and risk management strategies.

Seaoil president for retail business and chief finance officer Mark Yu said in a briefing the company hit P1.05 billion in 2015 versus P200 million in 2014.  Revenues reached P31.5 billion last year, up from the P28 billion it posted the previous year.

Yu said revenues increased due largely to a 59-percent growth in sales volume. Seaoil capitalized on areas where the company has logistical advantage while streamlining business processes and applying results-oriented programs to improve sales performance.

Demand for lower fuel prices also picked up as more consumers took advantage of attractive prices offered by car companies, he said.

He said, however, that low oil prices tempered growth. “Revenue only went up by roughly 10 percent because oil prices went down quite significantly.”

He said the company created a risk management strategy that allowed it to hedge at better prices. “You try to reduce your price exposure and because of that [strategy], we did really well.”

Yu said 2014 was a tougher year because the company was not prepared for the oil price crash.

“When we were able to plan better and managed the risk of falling oil prices (in 2015), that allowed us to do really much better,” Yu said, adding the company was in a position to grow by 25 percent in terms of sales and profit this year.

Seaoil presently serves 5.1 percent of the petroleum market in the Philippines and is the fourth largest oil firm, according to an industry report by the Department of Energy.