August 15, 2022 | 12:00am
MANILA, Philippines — Oil refiner Petron Corp. sees its earnings tripling to P18 billion this year because it hopes to maintain the rise in gross sales quantity on the again of easing mobility restrictions.
Petron president and CEO Ramon Ang mentioned the improved revenue can be pumped in by the mixed operations within the Philippines and Malaysia.
“Easily, it can reach P18 billion, of which Malaysia (operations) will deliver P12 billion,” he mentioned not too long ago when requested about progress prospects this year for the nation’s solely remaining oil refiner.
Last year, Petron posted a web income of P6.14 billion, recovering from a web lack of P11.4 billion the earlier year.
In the primary half of the year, Petron doubled its web income to P7.7 billion from P3.9 billion a year in the past. Net gross sales grew by 129 % to P398.5 billion from P174.1 billion, pushed by the sustained improve in gross sales quantity and costs.
Petron mentioned the benchmark Dubai crude averaged $102 per barrel from January to June as provide issues endured due to geopolitical conflicts.
In its first half report, the corporate mentioned gross sales quantity improved throughout all trades, with business gross sales posting the best improve as extra industries, together with aviation journey, rebounded from the pandemic’s affect.
Among the completely different segments, the full retail enterprise of the group posted a virtually 30 % uptick, fueled by the sturdy gross sales of its premium gasoline and diesel fuels.
Sale of lubricant merchandise, Jet-A1, liquefied petroleum fuel, and petrochemicals likewise confirmed sturdy progress in contrast to the earlier year, the corporate mentioned.
Petron mentioned it benefited from the sturdy regional refining margins, with greater manufacturing on the refinery.
Ang mentioned this got here following Petron’s large $2-billion improve at its Bataan refinery, which elevated its native manufacturing of gasoline, diesel, and petrochemicals.
Petron introduced its refinery improve in 2018, with the intention of accelerating the capability by 55 %.
Petron has a mixed refining capability of 268,000 barrels-per-day and produces a full vary of world-class fuels and petrochemicals.
It operates about 40 terminals within the area and has round 2,800 service stations the place it retails world-class gasoline and diesel.
Asked about promoting Petron again to the federal government or to different patrons, Ang mentioned there aren’t any plans.
Ang famous that whereas he can simply promote Petron again to the federal government, even by way of installment over 5 years, it will be tough for the federal government as it will have to spend billions to subsidize operations as a result of the general public transport sector would doubtless demand for reductions.