Petron Corp., the oil refining unit of San Miguel Corp., forecasts net income to reach P15 billion to P18 billion this year from P6.27 billion in 2015, or a 186 percent increase.
Petron president and chief executive officer Ramon Ang told reporters after the company stockholders’ meeting the projected higher net income would largely come from the recently upgraded 180,000-barrel-per-day refinery.
“Driven by a more efficient oil refinery, [it] has a liquid yield of 60, 66 to 67 percent but with the upgrade its 92 to 93 percent,” Ang said.
Petron’s $2-billion refinery upgrade started full commercial operations in January with higher utilization rate and increased production of higher-value fuels.
He said the company would also continue with its retail expansion program both in the Philippines and in Malaysia.
“In Malaysia, we had a massive gas station network expansion. We just completed the rebranding,” Ang said.
He said the company would upgrade the Port Dickson refinery in Malaysia. The company rebranded to Petron some 550 stations it acquired from Exxon Mobil.
Petron, meanwhile, has over 2,000 retail stations in the Philippines to date.
Petron reported a consolidated net income of P2.8 billion in the first three months, more than a 10-fold increase from P257 million over the same period last year.
The company’s strong performance was boosted by higher sales from both its local and regional operations.
“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,” Ang said earlier.
Consolidated sales volumes reached 25.3 million barrels in the first quarter of the year, a nine-percent jump from 23.2 million barrels last year.
Sales volumes rose 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 remains the undisputed industry leader in the country with total sales growing eight percent in the first quarter.
The company made headway in the local Lubricants sector, expanding 16 percent while posting strong growth in the reseller, industrial, and cooking or liquefied petroleum gas trades.
Petron saw a 17-percent growth industrial customers in Malaysia, reflecting the increasing confidence in the Petron brand.
Service station volumes increased, supported by the company’s upgrading and network expansion programs.
Petron said the increase in sales volumes partially offset the drop in oil prices, which led to lower sales revenues.
Sales revenues dropped to P77 billion, down 11 percent 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 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.
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