Sunday, 9 May 2010

Petron posts P1.9-B profit, up 122% in Q1

By MYRNA M. VELASCO
Manila Bulletin
http://www.mb.com.ph/articles/256485/petron-posts-p19b-profit-122-q1

Having improved on its business strategies from a loss-incurring hedging approach previously, Petron Corporation has more than doubled its net income in the first quarter to P1.9 billion, or 122 percent higher from last year’s P874 million.

The brisk financial outcome, according to the oil firm, can be attributed to the “significant increase in petrochemical sales, higher domestic volumes and lower interest expenses.”

Building on improved market share and enhanced revenue flows, Petron Chairman and Chief Executive Officer Ramon S. Ang noted that their way forward will be “to build on these as we roll out more projects that will sustain the company’s growth.”

The company logged sales of 689,000 barrels of petrochemical feedstocks (i.e. mixed xylene, propylene, benzene and toluene) during the period, indicating robust climb from last year’s 35,000 barrels.

It explained that revenue stream from petrochemicals production had been setting exponential growth following the commercial operations of its BTX (benzene, toluene and xylene) unit starting April last year.

“We are already seeing strong and positive returns from our recent initiatives aimed at improving our market share and enhancing revenue streams,” Ang stressed.

The leading oil player likewise attributed sales rise to stronger domestic demand. In the first three months, the company propped up sales by 12 percent to 10.65 million barrels from 9.49 million barrels in 2009. This then drove revenues 61 percent higher to P55.9 billion in January to March from P34.6 billion in the same period last year.

“Higher sales volumes can be attributed to a significant increase in the industrial sector due to a pick-up in economic activity and the aggressive acquisition of new accounts,” Petron pointed out, although it is not also discounting aggressive retail network expansion being part of the equation.

The company considerably kept its market leadership following the completion of the first phase of its expansion program which added 200 stations in its retail network.

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