EARNINGS: Petron posts P3.4-B Q1 net income

Petron Corp. on Wednesday announced a net income of P3.4 billion for the first quarter of 2011. In a statement, the company attributed the boost to an increase in export sales volumes and strong prices abroad of petrochemicals such as propylene, benzene, mixed xylene, and toluene. Total export sales reached 1.38 million barrels, 60 percent higher than the 867,000 barrels in the same period last year. Petrochemical export volumes also increased by 32 percent. Domestic demand meanwhile dropped due to high local prices. However, Petron posted an increase in market share from 37.8 percent at the end of 2010 to 38.6 percent as of February 2011. Sales revenue also increased to P64.05 billion in the first quarter the year from P55.88 billion a year earlier. “Our strong operating performance is a result of our strategy to further diversify into the high-margin, high-value petrochemicals business," Petron chairman and CEO Ramon S. Ang said. Rising income, higher investments Petron’s net income rose 84 percent in 2010 to P7.8 billion from P4.3 billion in 2009. "We are already seeing the results of the value-creating initiatives that we have embarked on since [San Miguel Corp.’s] entry into Petron," Ang said. The company continues to invest and expand. In 2010, Petron expanded its service station network to 1,700 service stations, and in February this year, it commissioned its polypropylene plant in Mariveles, Bataan, which can produce up to 160,000 metric tons of polypropylene per year. The company has also invested in the refinery expansion project which would enhance Petron’s capability to meet the demand for petrochemicals and white products such as LPG, gasoline and diesel. Once completed by 2014, Petron’s Bataan Refinery would be able to process a wider range of crude oils and increase current propylene production by almost 200 percent. The project will also allow local production of fuels that meet the Euro 5 global clean air standard, improving the country’s air quality, according to Petron. “The decision to undertake this massive project was not an easy one. In the end, however, our strong desire and commitment to ensure the country’s oil supply security and contribute to nation-building won out," said Ang. — BC/PE/VS, GMA News