Petron posts P10.8 billion income for 2016 on record-high sales

March 14, 2017

The Philippines’ largest oil refining and marketing company Petron Corp. saw  consolidated net income growing 73 percent to reach P10.8 billion in 2016.

Petron’s robust performance was driven by record sales volumes, operational efficiency with increased crude run at higher product yields, and effective risk management, the company said in a disclosure at the Philippine Stock Exchange Tuesday.

Combined sales from Petron’s Philippine and Malaysian operations hit a record 104.3 million barrels or six percent growth from 98 million sold in 2015.

Both markets saw solid growth across key segments namely reseller, industrial, LPG, and lubricants, with nearly all sectors experiencing double-digit growth.

Petron’s domestic volume grew by 10 percent hitting a record 48.2 million barrels in 2016, better than the Philippine demand growth of 8.8 percent based on latest data from the Department of Energy.

Sales of high-value products namely gasoline, diesel, and Jet A- 1/kerosene increased by 6.2 million barrels equivalent to a growth of 14 percent, further cementing Petron’s overall market leadership.

In Malaysia, domestic volumes grew by eight percent in 2016. This was fueled by strong sales in both the retail and commercial sectors.

The launch of innovative fuels namely the Blaze 100 Euro 4M and the Turbo Diesel Euro 5 helped drive volumes at Petron stations.

In the commercial business, increased demand from strategic sectors and additional volumes from new accounts helped push sales.

The surge in volumes helped offset the drop in sales revenue due to lower crude oil and product prices.

The benchmark Dubai crude averaged $41.27/barrel in 2016, 19 percent lower than the full-year 2015 average of $50.91/barrel. Consolidated revenue decreased by five percent to P343.8 billion. Operating income grew by 31 percent to P23.8 billion compared to P18.1 billion in 2015.

“We exceeded expectations in 2016 and are well-poised to sustain our growth momentum this year with our continued focus on profitable market leadership, optimal product yields from our refinery, and further synergies internally and with other San Miguel companies,” Petron president and chief executive officer Ramon Ang said.

“With the expected rise in vehicle sales, the influx of tourists, and more manufacturers setting up shop in the country, we are confident that we will be able to capture this growth since we are backed by the most extensive distribution and retail value chain in the country,” Ang added. DMS