MANILA, Philippines - Petron Corp., the country’s biggest oil refiner, boosted its net income by four-fold in the second quarter of 2015 on higher sales and improved margins despite depressed prices in the world market.
In a statement, the company said its net income reached P3.2 billion in the April to June period, 300 percent higher from P789 million in the same period in 2014.
The second quarter profit is also 12 times higher compared with P257 million in the fist quarter this year.
Petron attributed the second quarter spike to higher sales volumes and better margins as oil prices stabilized during the period.
As a result, the company’s first half net income rose 13 percent to P3.4 billion from P3 billion in the same period last year.
“Our strong and positive performance re-affirms the value of our game-changing projects as well as our strategy to increase sales of high-value products. We are confident of improved refining margins, even higher sales in all sectors, and increased market presence,” Petron chairman Eduardo Cojuangco Jr. said.
Operating income, meanwhile, jumped 51 percent to P8.9 billion from P5.9 billion a year earlier.
Petron said this was because consolidated sales volumes for the Philippines and Malaysia continued to increase on the strength of accelerated retail network expansion.
In the first semester of 2015, sales volumes rose nine percent to 47.4 million barrels from last year’s 43.3 million barrels.
Total sales in the Philippines surged 17 percent to 29.7 million barrels from 25.3 million barrels.
Local sales were boosted by the initial volumes from the commissioning and stabilization runs of its Refinery Master Plan–2 (RMP-2) which started to produce more high-value products despite a crude diet that now includes cheaper medium and heavy crudes.
The company said it is currently testing different crude types to produce optimal refinery yields.
Retail volumes grew 10 percent as the company leveraged its extensive nationwide network of 2,200 stations while domestic LPG business grew 25 percent.
Petron Malaysia, on the other hand, continued to contribute with growth in key segments including the commercial sector.
“We continue to invest for long-term growth such as further expanding our retail network, introducing revolutionary fuels, and making our value chain more efficient and resilient. Indeed, Petron is well-positioned to take its industry leadership to the next level,” Cojuangco said.