PETRON CORP. reported a 16% increase in net income to P9.5 billion in the first six months of 2018, as sales volumes in the Philippines and Malaysia were sustained while prices of petroleum products rose.
“We intend to fortify our leadership position as we ride on the continued economic growth of the Philippine and Malaysian markets. We continue to integrate our value chain, build up our supply and logistics capabilities, and roll-out more service stations than our competitors,” Petron President and Chief Executive Officer Ramon S. Ang said in a statement on Tuesday.
Petron, the country’s the largest oil refining and marketing company, did not release second quarter figures.
In the first half, consolidated revenues rose 32% to P273.5 billion from P207 billion in the same period last year “driven by sustained sales volumes of its Philippine and Malaysian operations and higher prices of crude oil and finished products.”
Consolidated sales volumes expanded to 54.4 million barrels. Benchmark Dubai crude oil in the first semester averaged $68 per barrel, 32% higher compared with the level in the same period last year.
In the Philippines, Petron said “continued focus on other high-margin products resulted in petrochemicals generating strong sales.” This allowed the company to surpass by 14% last year’s first half volumes. Gasoline and aviation fuel also increased by 8% and 4%, respectively.
In Malaysia, where Petron said it is a “leading player,” sales volumes grew by 7% largely because of stronger retail sales.
“Petron Malaysia now has over 620 service stations and is becoming a significant force in this highly-competitive market. Petron also benefited as the Malaysian ringgit recovered and continued to strengthen during the period,” it said.
Operating income for the semester stood at P15.6 billion, higher by 7% compares with than last year’s P14.6 billion.
“This did not reflect the robust growth in revenues of 32% because the increase in cost of crude outpaced the increase in prices of finished goods,” Petron said, adding that the price movements reduced the company’s gross profit rate to 8.5% from 10.2% a year ago.
Petron, which has a combined refining capacity of 268,000 barrels a day, produces a full range of fuels and petrochemicals. It has over 3,000 service stations where it sells gasoline and diesel.
Shares in the company slipped 1.11% to P8.90 each on Tuesday. — Victor V. Saulon
