Petron Corporation : Petron 2011 Net Profit PHP8.5 Billion; Up 7.6%
03/07/2012| 04:14am US/Eastern
Petron Corp. (>> Petron Corporation), the Philippines' largest oil company by sales, said Wednesday its net profit rose 7.6% in 2011 to PHP8.5 billion ($197.6 million), bolstered by higher margins on petrochemical products and export sales.
Petron, a unit of conglomerate San Miguel Corp. (SMC.PH), posted a PHP7.9 billion net profit in 2010.
It said sales last year climbed to PHP274 billion from PHP229 billion in 2010 even as total industry demand contracted by nearly 5% to about 294,000 barrels a day. It attributed the demand contraction to reduced fuel oil consumption of power plants amid higher oil prices.
"We have been able to sustain our growth momentum despite a year wherein we saw contraction on local sales due to higher product prices," said Petron Chairman and Chief Executive Ramon Ang in a statement. "While our core business remains robust, we are seeing more contributions from higher margin petrochemicals."
Petron started last year a $2 billion upgrade of its 180,000-barrel-a-day refinery to increase production volume and the conversion of fuel to higher value products as well as allow it to process other crude oil types. The project is expected to be in commercial operation by the second quarter of 2014.
-By Cris Larano, Dow Jones Newswires; 632-848-5051; firstname.lastname@example.org