Petron income shrinks to P2.3 B in 2012

MANILA, Philippines - Petron Corp., the country’s leading oil refiner, said its income dropped to P2.3 billion from  P8.5 billion in 2011 due to the volatility in global crude prices.

“The company managed a turnaround and achieved a modest income despite suffering a P2.1-billion loss in the second quarter of 2012 due to volatility in crude and product prices which resulted in depressed margins,” Petron yesterday said in a statement

However, Petron managed an increase in sales revenues from both its Philippine and Malaysia operations.

Sales revenues reached P424.8 billion in 2012 from its Philippine and Malaysia operations, an increase of 55 percent from the previous year’s P274 billion, Petron said.

The company attributed the jump in revenues to the consolidation of Petron Malaysia starting in the second quarter of 2012 as well as an increase in domestic sales volumes.

Domestic sales volumes increased nearly eight percent to 44.5 million barrels on the back of strong demand coming from all major sectors.

“This allowed the company to increase its leadership position with a market share of nearly 39 percent in 2012,” Petron said.

Despite the lower 2012 income, Petron said it remains focused on completing its capital programs aimed at bringing the company to the “next level of profitability and growth.”

“Despite the volatility in international oil markets, we continued to be on investment mode and forged ahead with our game-changing initiatives that will give Petron a decisive edge over its competitors in the long-term,” Petron chairman and chief executive Ramon Ang said.

He said the company is keen on completing major projects that will not only benefit the company but the entire country as well.

Petron is on track to completing its $2-billion Refinery Master Plan – 2 (RMP-2) by mid-2014 and slated to be operational by the fourth quarter of the same year.

Petron said RMP-2 would allow the conversion of all negative margin fuel into higher-value fuel products such as gasoline, diesel and various petrochemicals. 

“The upgrade also improves the supply security of the country and would make Petron capable of locally producing more environment-friendly and superior fuels,” Petron added.

As of end-2012, Petron has over 2,000 service stations in the country.

The company has also made inroads in Malaysia with the rebranding of nearly 100 service stations to the Petron brand.

This transpired barely a year after its acquisition of ExxonMobil’s downstream business.  The converted stations feature improved facilities and personalized services as well as innovative products.