Petron posts 10% profit hike to P2-B in 9 mos

Leading oil refiner Petron Corp. posted a net income of P2.02 billion in the first nine months of the year, 10 percent higher than the P1.84 billion profit posted over the same period in 2002.

In a statement, Petron said total sales volume rose by a modest two percent to 37 million barrels during the period, from 36.15 million barrels a year earlier, even as sales of fuel oil to the power sector continued to decline.

But Petron added it registered a stronger increase of 27 percent in export volumes during the period, which helped drive the company’s revenues up by 22.7 percent to P81.1 billion, compared to P66 billion in 2002.

With higher revenues, the company also attributed the increase in profits to a seven percent reduction in operating expenses.

Improvements in operating efficiency as well as the company’s ongoing cost management programs have brought operating expenses down to P2.62 billion as of Sept. 2003, against P2.82 billion in the same period last year.

Despite severe competition from existing and new players, sales to the retail sector also improved, growing by four percent over the same period last year.

Earlier this month, the company announced it is proceeding with its investment in two refinery facilities.

"Our investment in an LVN isomerization unit and a gasoil hydrotreater will make our refinery capable of producing compliant gasoline and diesel," Petron’s public affairs manager Virginia A. Ruivivar said.

"Beyond compliance, these projects have a strategic purpose, enabling the country to have a local source of CAA-mandated fuels," she added.

Petron also continues to launch fresh marketing initiatives. Last Oct. 10, it started selling CAA-compliant diesel at its newly-opened service station in Batasan Road, making it the first local oil refiner to introduce the clean fuel to the market.

On the same day, it also held groundbreaking ceremonies for another Petron mega station at the Subic Bay Freeport Zone. The station is the first of its kind in that area, and just one among many stations offering one-stop convenience shopping that the company is planning to put up in other strategic sites.