Petron 2011 profits up 7.6% to P8.5-B
MANILA, Philippines - Petron Corp., country's largest oil refiner and retailer, reported a 7.6% growth in its 2011 net income, citing higher export sales and recovery of regional product cracks.
In a disclosure to the stock exchange on Wednesday, March 7, Petron said its net income grew to P8.5 billion in 2011 from P7.9 billion in 2010.
Sales revenues reached P274 billion in 2011 from P229.1 billion in previous year.
This despite a nearly 5% contraction in industry demand due to lower fuel consumption by power plants amid high oil prices. It reported that 294,000 barrels were sold by industry players per day in 2011.
"Petron was able to mitigate the demand contraction and outperformed its 2 closest competitors. Petron’s sales volumes remained flat while its rivals suffered volume losses," the oil company wrote.
Quotes from Petron chairman and CEO Ramon Ang:
- We have been able to sustain our growth momentum despite a year wherein we saw contraction in local sales due to higher product prices. While our core business remains robust, we are seeing more contributions from higher margin petrochemicals.
- Seeing this potential, we have made a substantial investment at our Bataan refinery to produce more white products (LPG, gasoline, diesel) and scale up petrochemical production significantly.
- We are very optimistic and confident of the company’s prospects moving forward. We have the right mix of initiatives that will ensure the company’s growth and profitability over the long-term.
From its yearend report, Petron Corp. claimed that it:
- remained the undisputed industry leader with nearly 38% of the total market
- led in all major market segments including Retail, Industrial and LPG
- passed its closest competitor, and became No. 1 in the Lubricants segment for the first time
At its 180,000 barrel-per-day Bataan refinery:
- the $2 billion-worth Refinery Expansion Project (RMP-2) was launched to optimize the refinery
- the RMP-2 allows the conversion of fuel into higher value products and helps ensure the country’s supply security since it will give Petron’s refinery the flexibility to “digest” a wider array of crude oil types from various supply points
- the RMP-2 is targeted for commercial operation by the 2nd quarter of
Plans for 2013
- a new power plant at the Bataan refinery expected to generate significant savings will be completed
- first phase will be onstream by early 2013 while 2nd phase at end-2013
- using the latest technologies, the co-generation plant has 4 Circulating Fluidized Bed boilers that can generate the nominal equivalent of up to 216 MW
Update on retail network:
- stood at 1,900 at end-2011, the most extensive in the local oil industry
- aggressive expansion to continue