Petron’s 9-month earnings surge 58% on strong petroleum demand

The country’s largest petroleum refiner and distributor reported a sharp increase in earnings for the first nine months of the year, 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 that 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 as the company’s high-performance engine oils remain a top choice among motorists. Gasoline and Jet A-1 likewise saw double-digit volume increases at 15 percent and 11 percent, respectively.

Petron’s petrochemical sales grew by 24 percent over the period. Last year, Petron commissioned its upgraded refinery in Bataan, significantly increasing its fuels production, as well as petrochemicals to fuel the country’s economic growth.

Consolidated sales revenues for the first nine months of 2017 reached P313.5 billion, up 27 percent from 2016’s P247.8 billion. Operating income, in turn, grew by 31 percent to P22.1 billion versus the previous year’s P16.8 billion.

Petron is studying the next phase of its refinery upgrade and expansion aimed at increasing production of high-margin fuels and petrochemicals. The company is also expanding its logistics and retail network in both countries. /jpv