Petron Q1 earnings fall 12% to P2.2-B

MANILA, Philippines – Earnings of Petron Corp., the Philippines’ largest oil refining and retail company, fell 12% in the first quarter of 2013 to P2.2 billion from P2.5 billion the year before.

The drop was “due to lower margins as reference prices for both crude oil and finished products dropped during the current period, causing a drastic drop in retail prices against higher costing inventory,” the company said in its statement.

Petron’s revenues however grew 50% to P112 billion from P74.7 billion, boosted by the consolidation of its Malaysian unit during the second quarter of 2012.

In March 2012, Petron offered to buy the remaining 35% stake of minority shareholders in Esso Malaysia Berhad in Malaysia.

 

Petron said the tender offer marked its entry into the attractive Malaysian market and was a strategic opportunity to increase its presence in Asia.

The company has converted 125 of the 550 service stations in Malaysia to the Petron brand. The re-branding program is expected to be completed in 2014.

“Petron is in a period of unprecedented growth and expansion. The projects we set out to do a few years ago are nearing completion and with it, the prospects of a better future for both the company and the country,” Petron Chairman and CEO Ramon Ang said in the statement.

Petron sold 20 million barrels during the first quarter of 2013, up 66% from the 12 million barrels in the same period the previous year.

Dubai crude averaged $108.19/barrel in January to March, against $116.45/barrel in the same months of 2012.

In the Philippines, Petron posted a 7% sales volume growth in their retail sector. The growth was driven by its expansion program, which brought its network to 2,070 service stations. With this increase, Petron operates the largest network in the industry with over 38% share of the total market.

In February, Petron announced the resignation of Eric Recto as president, and Fredinant Constantino from the company’s board. – Rappler.com