Philippines’ Petron H1 net profit grows 55% on strong margins

SINGAPORE (ICIS)–Petron’s first-half net profit surged 55% year on year to peso (Ps) 5.3bn ($113m) on the back of higher sales volumes and strong margins, although revenues were hit by lower crude prices, the Philippine refiner said on Monday.

Revenues for January to June 2016 fell 13% year on year to Ps161.9bn, citing the decline in Dubai crude average to $36.80/bbl from $56.59/bbl in the same period last year, the company said in a statement.

But consolidated sales volume in its Philippine and Malaysian operations were up 9% at 51.8m barrels, with first-half operating income posting a 29% year-on-year increase to Ps11.5bn, it said.

“Despite weaker oil prices and reduced product ‘cracks’ (the differential between the prices of crude oil and finished products), Petron’s margins were sustained by its $2bn Bataan refinery upgrade which has substantially increased the production of higher value white products and petrochemicals,” Petron said.

Petron’s complex in Limay, Bataan processes crude oil into a full range of petroleum products, including gasoline, diesel, liquefied petroleum gas (LPG), jet fuel, kerosene, and industrial fuel oil.

The site also produces petrochemical feedstock benzene, toluene, mixed xylene, and propylene, according to Petron’s website.

“Petron continues to deliver strong results amid the prolonged slump in oil prices. This is a direct effect of much improved operational productivity and the expansion of our markets,” Petron president and CEO Ramon Ang said in the statement.

“We are well-positioned to sustain our performance throughout the year,” Ang said.

($1 = Ps46.9)

Picture: Petron refinery in Limay, Bataan (Source: Petron website)