Petron Corp. posted a P5.3-billion profit in the first half of 2016 on strong sales, improved production from its refinery and cost efficiencies.
The oil company’s income from January to June was a 55-percent improvement on the P3.4 billion posted a year earlier.
Petron attributed the strong performance to a surge in sales volumes, supported by its aggressive network expansion, improved production and cost efficiencies,
“Petron continues to deliver strong results amid the prolonged slump in oil prices. This is a direct effect of much improved operational productivity and the expansion of our markets,” Petron president and CEO Ramon Ang said.
Consolidated sales volumes in the Philippines and Malaysia jumped nine percent from 47.4 million barrels sold in the first half of 2015 to 51.8 million barrels in the same period this year as the company saw robust growth across its major businesses, namely retail, industrial, liquefied petroleum gas (LPG), and lubricants in both countries.
In the Philippines, industrial sales grew 14 percent, lubricants sale expanded 18 percent while LPG sales increased 12 percent. As of end-June, Petron has 2,230 service stations.
Meanwhile, Petron said the company saw a nine-percent increase in sales in Malaysia, showing “growing preference and confidence in Petron Malaysia’s products and services.”
Consolidated sales revenues for the period dropped 13 percent from P186.1 billion to P161.9 billion due to lower crude oil prices. Benchmark Dubai crude averaged $36.80 per barrel in the first half of 2016, lower compared to $56.59 per barrel last year.
However, Petron’s margins were sustained by its $2-billion Bataan refinery upgrade which has substantially increased the production of higher value white products and petrochemicals. Operating income hit P11.5 billion, a 29 percent growth from last year’s P8.9 billion.
“We are well-positioned to sustain our performance throughout the year,” Ang said.
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