Petron income revs up to P4.4B

Petron Corp.’s consolidated net income from its Philippine and Malaysian operations grew nearly seven times to P4.4 billion in the first nine months of 2013.

The 687-percent surge from the P559 million in income registered in the Jan.-Sept. period last year was fueled by a 13-percent jump in sales volume and better refining margins, the oil refiner said.

Total sales volume grew by 7.1 million barrels at end-Sept. to 60.2 million from 53.2 million barrels over the same period in 2012. This translated to sales revenue of P336 billion, a 9-percent growth from the same period last year, Petron said.

At the same time, refinery margins across the region significantly improved as product “cracks”—the price differential between crude and finished products— widened, Petron said.

“We are nearing the completion of major projects that will further boost Petron’s competitive advantage and performance,” Petron chair and CEO Ramon S. Ang said in a statement. “We remain bullish about our prospects and look forward to delivering stronger results.”

Petron is nearing the completion of its $2 billion Refinery Masterplan Phase 2 (RMP-2)—the single largest investment by a Philippine corporation—at its 180,000 barrel-per-day Bataan refinery.

The project, which is scheduled for completion in the second half of 2014, is expected to boost margins as it eliminates low value fuel oil by converting it to high-value gasoline, diesel, and petrochemicals. It also gives the flexibility to refine crude from a variety of sources, enhancing the country’s supply security.

RMP-2 will make Petron the only oil company capable of producing fuels that meet the more stringent and environment-friendly Euro-4 standard, the company said in its report.

In Malaysia, the company’s upgrading and conversion program is in full swing with nearly half of the 560 service stations rebranded to Petron.