Oil refiner Petron Corp. said Tuesday consolidated net income jumped 30 percent in 2017 to P14.1 billion from P10.8 billion in 2016, driven by higher demand and strong performance of high-value segments.
“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 Ramon Ang said in a statement.
Consolidated sales revenues grew 26 precent to P434.6 billion in 2017 from P343.8 billion in 2016, on higher volume. Operating income also increased 16 percent to P27.6 billion.
Petron said the strong revenues were driven not only by higher sales volumes, but also by a continued focus on high-value segments in the Philippines and Malaysia operations.
The country’s biggest oil firm sold 107.8 million barrels last year, up from 105.7 million barrels sold in 2016.
Consolidated retail volumes grew 8 percent as the company continued to expand in the highly competitive segment with more than 3,000 service stations during the year.
Petron said sales of high-margin products such as gasoline, Jet A-1 and lubricants grew at double digits in 2017.
Petron launched the first and only Euro 6 fuel in the Philippine market–Blaze 100 Euro 6 last year. Lubricants such as Blaze Racing also helped grow the business by 15 percent.
The company said sales would have been much higher if not for scheduled maintenance turnarounds in both the 180,000-barrel-per-day Bataan refinery and the 88,000-barrel-per-day Port Dickson refinery in Malaysia.
Petrochemicals such as propylene also provided good margins and additional revenue as volumes grew 9 percent.
“Even with our strong presence backed by our unmatched logistics and production capabilities, we are committed to invest more and help secure the country’s energy needs,” Ang said.
The company is expanding its logistics and retail network in both countries to meet more demand. Petron also plans to expand its Philippines and Malaysi refineries.