The country’s largest petroleum refiner and distributor reported a sharp increase in earnings at end September, thanks mainly to higher sales in its Philippine and Malaysian operations, coupled with strong demand for its petrochemical products.
In a press statement, Petron Corp. said it made a net income of P11.8 billion for the January to September period, representing a 58-percent spike from the previous year’s earnings of P7.4 billion.
Petron, a subsidiary of the San Miguel Corp. conglomerate, said the combined sales volumes of its Philippine and Malaysian operations hit 80.2 million barrels in the first three quarters of the year, slightly higher than the 79.3 million sold in the same period in 2016.
“We will definitely have another banner year as we reap the benefits of our strategic programs,” Petron chair Eduardo Cojuangco Jr. said. “These have given us more diverse income streams and improved profitability.”
The company said sales volumes would have been higher if not for scheduled maintenance at its facilities. Its Bataan refinery was running on maintenance mode below optimum capacity for 35 days in the second quarter and 18 days in the third quarter.
Petron Malaysia grew volumes by 9 percent in the period under review.
In the retail segment, Petron’s consolidated volumes grew by 8 percent as a result of its continuing network expansion in the Philippine and Malaysian markets coupled with marketing programs. Lubricant sales, meanwhile, jumped 15 percent. Gasoline and Jet A-1 likewise saw volume increases at 15 percent and 11 percent, respectively.
Petron’s petrochemical sales grew by 24 percent over the period. Last year, the firm commissioned its upgraded refinery in Bataan, significantly increasing its fuel and petrochemical production.
Consolidated sales revenues in the nine months to September reached P313.5 billion, up 27 percent. Operating income, in turn, grew by 31 percent to P22.1 billion.