Oil refiner and distributor Petron Corp. said consolidated net income increased by more than tenfold in the first quarter to P2.8 billion from P257 million a year ago, boosted by higher sales in local and regional markets.
“We are now experiencing the full benefits of our strategic programs and we are gaining momentum as we reach new levels of growth and profitability,” Petron president Ramon Ang said.
Consolidated sales volume rose 9 percent to 25.3 million barrels in the January-March period from 23.2 million barrels a year earlier, despite the drop in retail prices.
Sales volumes were up across all major business segments in both the Philippines and Malaysia.
“We are definitely on track to deliver a stronger performance this year,” Ang said.
Petron remained the market leader in the country, with total sales growing 8 percent in the first quarter.
The company made headway in the local lubricants sector, which expanded 16 percent while also posting strong growth in reseller, industrial and cooking or liquefied petroleum gas trades.
Petron also saw a 17-percent growth in industrial customers in Malaysia, reflecting the increasing confidence in the Petron brand.
Service station volumes also improved, supported by the company’s upgrading and network expansion programs.
Petron said the increase in sales partially offset the drop in oil prices, which led to lower sales revenues.
Sales revenues in the first quarter dropped 11 percent to P77 billion from P86.7 billion in the first three months of 2015.
Operating income nearly doubled in the first quarter, reaching P5.8 billion from P3 billion in the same period in 2015.
“Despite weak oil prices in the first few months of 2016, the differential between crude and finished products remained strong, supporting refining margins,” Petron said.
Petron’s $2-billion refinery upgrade project also supported margins with higher utilization of its 180,000-barrels-per-day capacity, increased production of higher-value fuels and petrochemicals, and the use of cost-efficient heavier crude.
Petron’s refinery, the biggest in the country, is located in Bataan.
Petron said it would continue to focus on network expansion program with the aim of building over 250 new service stations in the Philippines and Malaysia in 2016. There are nearly 2,800 Petron stations combined.
Petron is the largest oil refining and marketing company in the Philippines and is a leading player in the Malaysian market.
It has a combined refining capacity of 268,000 barrels per day and produces a full range of world-class fuels and petrochemicals.