Tuesday, 30 March 2010

Petron turns around with P4.3-billion net profit

Manila Bulletin

More stable crude and finished product prices were the primary reasons cited by leading oil refiner Petron Corporation to have pulled up its net income to P4.3 billion in 2009; reversing record losses of P3.9 billion the previous year.

The oil firm simply noted that the year 2008 was just “an abnormal year for many oil refiners, who experienced extreme volatility in crude and product prices.”

Nevertheless, it is a known fact in the domestic oil industry that Petron hedged big-time on its crude purchases that year given record peaks in world prices then. However, when prices suddenly dropped in third to fourth quarters, this resulted in huge losses for the company.

Across the Asian region, it is fair to say though that Petron was not the only refiner which suffered such fate; as many others have also fallen into the prey of losing that much due to hedging or on un-calibrated crude or product procurement strategies.

Even with the profit boost it logged last year though, Petron revealed that it sales had not been as rosy, with revenues down by 34 percent; and it attributed such to “lower selling prices of petroleum products.” It sales earnings dipped to P176.5 billion last year from the 2008 level of P267.7 billion.

Petron Chairman Ramon S. Ang pointed to “weak economic activity and cutthroat competition,” as influencing factors to the company’s financial performance last year.

Albeit, he emphasized that the silver lining to all that, was “we managed to turn around;” despite the so-called market hurdles.

“More importantly, we remained focused on our business initiatives and implemented several major projects that put us in a better position to sustain our growth momentum,” he stressed.

It must be recalled that the company added 200 stations in its retail portfolio last year; and this is something it wants to continually pursue in the coming years.

1 comment:

  1. thank you for this very informative article of yours.