PETRON Corp., the leading oil refining and marketing company in the Philippines, said on Tuesday that consolidated net income in 2017 surged 30 percent to P14.1 billion from P10.8 billion in the previous year.
Petron said strong sales volumes and the continued focus on high-value segments in its Philippines and Malaysia operations fueled earnings last year. In a disclosure, it said operating income rose 16 percent to P27.6 billion.
Consolidated sales revenues climbed 26 percent to P434.6 billion last year from P343.8 billion in 2016. By volume, consolidated sales grew to 107.8 million barrels last year after the record-breaking 105.7 million barrels sold in 2016.
Petron said sales would have been much higher if not for scheduled maintenance turnarounds in both its 180,000 barrel per day (bpd) Bataan refinery and its 88,000 bpd Port Dickson refinery in Malaysia. Consolidated retail volumes rose 8 percent as Petron continued to expand, surpassing the 3,000 service station count in 2017.
Petron said sales of high-margin products including gasoline, Jet A-1, and lubricants grew by double digits in 2017. Lubricants such as Blaze Racing helped grow this segment by 15 percent, while petrochemicals provided good margins and additional revenue as volumes increased by 9 percent.
“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,” Petron President and Chief Executive Officer Ramon Ang said.
Ang added the company is committed to invest more and help secure the country’s power needs, citing its strong presence backed by logistics and production capabilities.
Petron, which supplies almost 40 percent of the country’s oil requirements, is expanding its logistics and retail network in the Philippines and Malaysia amid increasing demand. It also exports different petroleum and non-fuel products to Asia-Pacific countries including India, Japan, Malaysia, Singapore, South Korea, Thailand, and Pakistan, as well as to the United Arab Emirates.