Petron’s first-quarter profits doubled
6 May 2022
Petron Corp., the country’s last refiner, saw its first-quarter profits doubled, from P1.73 billion to P3.6 billion, because to improved demand and higher foreign pricing.
Revenues increased by more than a third, from P83.31 billion to P172.33 billion. Due to geopolitical tensions and supply concerns prompted by the Russia-Ukraine war, Dubai crude hit an average of $95.6 per barrel during the quarter.
Due to increased demand and the relaxation of mobility limitations, Petron’s total sales volumes from the Philippines, Malaysia, and its trading unit in Singapore increased by 34% to 25.67 million barrels.
Its overall domestic sales increased by 43%, suggesting a general increase in local demand.
The retail component of Petron increased by 7%. Meanwhile, profits doubled of its jet fuels and lubricant products grew by about 50%, reflecting improved economic activity and the gradual return of domestic and international travel.
In January of last year, the business reopened its polypropylene factory after a two-year hiatus due to increased demand and petrochemical costs. Due to increased demand for resin used in personal protective equipment (PPEs) and online deliveries, its petrochemical volumes increased by 30%.
“Our efforts to develop our brand equity, improve our financial resilience, and improve our efficiencies have all achieved favorable benefits.” “We now find ourselves in a position of renewed strength and confidence two years into this epidemic as we continue to manage the industry with the same caution and prudence that enabled us turn our financial performance around,” said Ramon Ang, president and CEO of Petron.
Petron opened more stations in significant areas during the quarter as part of its overall network development initiative.
Petron has been using a new modular and panelized construction approach for some of its new builds since 2021, making service station construction more efficient and environmentally friendly.
Meanwhile, the business is building a new power plant that would allow it to boost steam and electricity generation at the Petron Bataan Refinery.
The power plant, which is expected to be finished this year, will make the country’s lone refinery capable of meeting 40% of national fuel demand while also being self-sufficient in terms of power.
“These and other steps are designed to safeguard our company’s long-term growth and viability.” For us, the challenge is not just to keep expanding in terms of scale, but also to have a greater impact on environmental challenges and creating a better world for future generations. “We recognize that there is still work to be done, and we are totally committed to seeing this vision through,” Ang stated.
Petron added nine Treats convenience outlets to its retail network expansion.
