Petron Corp., the country largest oil refiner and distributor, said Tuesday net income surged 56 percent in the first half from a year ago, despite crude oil inventory losses and a 45-day scheduled maintenance shutdown of its refinery as a part of a 10-year inspection program.
Petron said consolidated net income reached P8.2 billion in January to June, up from P5.3 billion it earned over the same period last year.
The company said the solid performance was driven by its deliberate focus on more profitable segments and improved refinery production yields, while sustaining sales volumes coming from a record-breaking year in 2016.
“With our upgraded refining capabilities, we derived more value and produced more profitable products. This is strongly complemented by our extensive expansion efforts in both our logistics and retail businesses,” Petron president and chief executive Ramon Ang said.
Petron’s total sales volumes in Malaysia and the Philippines reached 52.9 million barrels, slightly higher than the previous record of 52.6 million in the first six months of 2016. Petrochemical sales also surged 78 percent year-on-year.
Consolidated sales revenues increased 28 percent to P207 billion in the first six months, from P161.9 billion a year earlier.
Operating income grew 27 percent to P14.6 billion from the previous year’s P11.5 billion.
The company said it was confident about prospects for the year, underpinned by the country’s strong economic performance.
“With the country’s economy growing at a rapid pace, we are expanding our facilities not just for the needs of today, but also to ensure a reliable and continuous supply of quality fuels for tomorrow. Our expansion projects mean more employment opportunities and economic activity, which help in nation-building,” Ang said.
Petron has a combined retail network of almost 2,900 service stations, more than a fifth of which are in Malaysia.
The company has rebranded and built an extensive retail network of nearly 600 stations in Malaysia since 2012.
Petron has dozens of service stations in various stages of development in both countries.