Petron pumps up Q1 income by 16% to P1B

Petron Corp., the country’s largest oil refiner, reported yesterday a P1.01-billion net income in the first quarter of 2006, pumped up by increased export volumes.

The oil firm’s earnings during the period was almost 16 percent higher than the previous year’s comparative quarter net profit.

Despite rising oil prices in the global market and the contraction of domestic demand by eight percent, the company managed to increase aggregate sales volume by almost 14 percent. This was due to the surge in its exports, which increased by almost 400 percent. Favorable regional prices likewise gave further boost to the company’s bottom line.

"This only gives us more reason to increase our capability to export products, especially petrochemicals. With domestic consumption for fuels continuing to slump, it is only prudent that we look to the regional market for growth opportunities," Petron public affairs manager Virginia Ruivivar said.

Petron is undertaking a $300-million refinery master plan over the next three years to allow it to extract more petrochemicals from its refinery streams.

Based on the plan, the company will add refinery units for the extraction of propylene, benzene and toluene, and will expand its mixed xylene production capacity.

Construction is also underway for the petro fluidized catalytic cracker (PetroFCC) project with the recent award of the contract to Daelim Unlimited of South Korea.

"We are expecting to have the PetroFCC operational by 2008. Apart from enabling the extraction of the high-value petrochemical propylene, the project will further improve operating efficiencies at our refinery and increase its yield of valuable white products," Ruivivar said.

In 2005, Petron earned P6.051 billion, about one third of which was contributed by exports.