Mandaluyong—(PHStocks)—The Philippines’ leading oil company Petron Corp. (PSE: PCOR) sustained its momentum posting a consolidated net income of PhP7.4 billion in the first three quarters of 2016 or a growth of 47% from the previous year’s earnings of PhP5.1 billion over the same period.
Petron’s solid performance was fueled by sales volume growth due to strong demand and improved production efficiencies.
Philippine and Malaysian sales volumes grew by a combined 6% to 78.2 million barrels in the first nine months of the year compared to the 73.6 million sold in the same period 2015. Both markets saw substantial growth across all major business segments namely Reseller, Industrial, LPG, and Lubricants.
The increase in sales volume partially offset the drop in sales revenue due to lower product prices. Consolidated revenue decreased by 11% to P247.8 billion in first three quarters of the year versus P278.3 billion in the same period in 2015.
Domestic sales in the Philippines grew by 3.3 million barrels or 10%, to 36.4 million boosted by increased industrial diesel sales, retail gasoline volumes, high demand from the aviation sector, and growing LPG consumption from households.
The Company also reported that its Malaysian operations continue to exhibit robust growth with an 8% increase in its domestic sales over the period.
“We are confident that we can substantially increase our profits in 2016 compared to last year as demand for fuels remains strong. Strong demand combined with strategic programs we have successfully executed means a higher growth trend for Petron over the long-term,” Petron President and CEO Ramon S. Ang said.
Operating income grew by 23% to P16.8 billion in the first nine months of the year. Recently, Petron issued and listed P20 billion in Fixed Rate Bonds to retail investors. The issue was twice oversubscribed over the base offer and was priced at the tight end of the marketing range. Proceeds from the bonds were used mainly to repay existing U.S. dollar denominated debt.
One major project is the retail network expansion program that enables Petron to increase its market presence. Petron has nearly 2,250 service stations nationwide, larger than its three closest competitors combined. In Malaysia, the Company continues to expand its current network of about 570 retail outlets by building more service stations, particularly in underserved markets.
Petron is also producing more high-value fuels and petrochemicals after the commissioning of its US$2 billion refinery upgrade project at the start of the year. Costs have likewise gone down since its 180,000 barrels-per-day Bataan refinery can now process cheaper crudes. Petron’s Bataan Refinery is one of the most advanced facilities in the region.
Last month, Petron locally produced and launched the country’s first Euro 5 standard fuel. Blaze 100 Euro 5 is much cleaner than standard Euro 4 fuels and promises optimal power, exceptional engine cleanliness, better fuel economy, and lower emissions. Petron Malaysia is also a leader in fuels innovation with the recent roll-out of the Turbo Diesel Euro 5.