Petron earnings hit P14B in 2017

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PETRON Corp. on Tuesday said its consolidated net income rose 30% to P14.1 billion in 2017, with robust sales volume fueling the growth along with the results of the company’s focus on high-value consumer segments in the Philippines and Malaysia.

“We were able to capture increased fuel demand with the robust growth in the Philippine and Malaysian economies. Underpinned by large scale infrastructure projects, we see strong demand growth in both markets over the medium term and this bodes well for our business,” said Ramon S. Ang, Petron president and chief executive officer, in a statement.

“Even with our strong presence backed by our unmatched logistics and production capabilities, we are committed to invest more and help secure the country’s energy needs,” he said.

Petron reported its consolidated sales revenues jumped 26% to P434.6 billion in 2017, driven by strong sales volume. Operating income likewise increased by 16% to P27.6 billion last year.

Last year, consolidated sales volume reached 107.8 million barrels, topping Petron’s “record-breaking” 105.7 million barrels in 2016, the company said.

The oil refining and marketing company said consolidated retail volumes grew by 8% as Petron continued to expand in the highly competitive segment to breach the 3,000 service station count during the year.

“Sales of high-margin products such as gasoline, Jet A-1, and lubricants grew by double digits in 2017,” Petron said.

In early 2017, the company launched the first and only Euro 6 fuel in the Philippine market — Blaze 100 Euro 6, it said. Lubricants such as Blaze Racing helped grow this business by 15%, it added.

The company said sales would have been higher if not for scheduled maintenance turnarounds in its 180,000 barrel-per-day Bataan refinery and its 88,000 barrel-per-day Port Dickson refinery in Malaysia.

Petrochemicals, such as propylene, provided good margins and additional revenue as volumes grew by 9%, Petron said.

“The company is also expanding its logistics and retail network in both countries to meet more demand,” it added.

On Tuesday, shares in Petron rose 2.36% to P9.54 each. — Victor V. Saulon