Petron Corp net income to reach P18 billion this year

MANILA, Philippines — Petron Corp. will likely hit a net income of at least P18 billion this year from P14 billion in 2017, with its Bataan refinery now running at almost full capacity, its top official said.

The oil giant plans to start the expansion of the world-class facility this year to add 90,000 barrels per day and bring the refinery’s total capacity to 270,000 barrels per day by 2021.

“By 2021, the plant will be finished...we will start construction this year. It’s a go,” Petron president and CEO Ramon Ang told reporters last week.

Petron is pouring in at least $5 billion for the expansion project, which will replace an earlier plan to build a totally new plant “somewhere in the south.”

Ang said it was more practical to just expand the existing facility to maximize the common equipment and the available space in the site.

Petron’s refinery in Limay, Bataan, which supplies 40 percent of the country’s fuel requirements, is the biggest and pioneering refinery in the Philippines.

The refinery started in 1961 with a capacity of just 25,000 barrels per day.

At the expanded 270,000 barrels per day capacity, Petron will be able to supply more than half of the country’s estimated fuel demand of 400,000 barrels per day.

Originally, Ang said Petron received offers from foreign oil companies for possible partnerships in the new refinery.

“But we think we can do it ourselves,” Ang said.

There are also plans to expand the refinery in Malaysia to 150,000 barrels per day from 80,000 barrels at present.

In Malaysia, Petron operates the Port Dickson refinery, seven storage facilities, and about 580 service stations.

The complex is equipped with a crude distillation unit, a naphtha hydro treating unit, two semi-regeneration reformer units, and a kerosene hydro treating unit.

It is further supported by amenities such as wastewater treatment facilities, steam generator, cooling water plant, flare and safety relieving unit, crude storage tanks, refined petroleum products storage tanks, as well as spheres for liquefied petroleum gas storage.

With the refinery running at 99 percent of its capacity and bottlenecks in operations smoothened out, Ang is optimistic Petron will continue to post strong growth.

“2019 will be even better,” he said.

Petron posted a phenomenal year in 2017, registering net income of P14.1 billion, 30 percent higher the P10.8 billion in the previous year, as a result of its continued focus on high-value segments and strong sales volumes from both its Philippines and Malaysia operations.

Consolidated revenue reached P434.6 billion, up 26 percent from 2016’s P343.8 billion, and operating income was up 16 percent to P27.6 billion.