Petron triples 3rd quarter profit

Petron Corp., the country’s largest oil refinery, reported a 118.53 percent growth in its net income for the first nine months of the year to P1.84 billion.

For the third quarter alone, Petron’s profits more than tripled to P602 million compared with only P169 million the same period last year.

Petron attributed its impressive performance to sustained cost discipline and sound financial management.

Petron corporate communications manager Virginia A. Ruivivar said: "The strategic initiatives we have implemented to expand our market and increase our base volume continue to reap benefits for the company."

Ruivivar said that while Petron’s profit level is gradually returning to normal levels, it is still well below historical standards. Shortly before the oil deregulation law was implemented in 1996,Petron registered a net income of P4.2 billion.

Year-to-date sales volume totaled 36.4 million barrels, three percent higher than 2001’s 35.4 million barrels. This was mainly driven by a marked improvement in industrial and lube crude sales, which grew by 12 percent and 13.6 percent, respectively, in volume.

Revenues, on the other hand, slightly declined to P66.12 billion during the period January to September this year from the year ago level of P67.4 billion. Cost of goods sold also went down to P59.69 billion from P61.73 billion.

To sustain its strong financial position, Ruivivar said: "We will continue to unlock value in our core assets as well as focus on high growth-high volume segments in the local market."

Organized on Dec. 25, 1966, Petron is the Philippines’ top oil refining and marketing company, supplying more than one-third of the country’s oil requirements. The company holds a market share of 38.4 percent.

Petron’s refinery is located in Limay, Bataan which processes crude oil into a full range of petroleum products, including liquefied petroleum gas, gasoline, diesel, jet fuel, kerosene, industrial fuel oil lubes and greases and asphalts.

From the refinery, Petron moves products mainly by sea, using tankers and barges to distribute products to a nationwide network of bulk plants and terminals. Through this network, it sells fuel oil, diesel and LPG to industrial customers.

Petron has long-term lease agreements with the Philippine National Oil Co. until August 2018 covering certain lots where its refinery and other facilities are located. Lease charges on refinery facilities escalate at two percent a year, subject to increase upon reappraisal.