Philippines’ Petron 2016 net profit jump 73% on record sales

SINGAPORE (ICIS)–Petron posted a 2016 net profit of peso (Ps) 10.8bn ($215m), up by 73% from the previous year on the back of record sales volumes, the Philippines’ biggest refiner said on Tuesday.

Combined sales from its Philippine and Malaysian operations rose by 6% to 104.3m barrels, but overall revenue fell 5% to Ps343.8bn, the company said in a statement.

“The surge in volumes helped offset the drop in sales revenue due to lower crude oil and product prices,” it said, noting that the benchmark Dubai crude average declined 19% to $41.27/barrel.

The company’s operating profit last year grew 31% to Ps23.8bn.

Petron said that 2016 marked the first full year of commercial operations for its $2bn refinery upgrade.

“This has enabled the company to produce more high-margin fuels and petrochemicals supporting the substantial growth in sales,” it said.

“Costs have likewise gone down since its 180,000 barrel-per-day Bataan refinery can now process cheaper crudes,” Petron said.

($1 = Ps50.28)

(Top image: Photographer Pius Koller / imageBROKER/REX/Shutterstock)