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The country’s largest oil refiner and retailer Petron Corp. registered a lower net income in the first quarter of this year, as prices for oil relatively dropped during the period.

In a statement, Petron Corp. said that its consolidated net income of P2.2 billion during the first quarter of this year was lower than the P2.5 billion posted in same period of the previous year, caused by lower margins as reference prices for both crude oil and finished products dropped that eventually led to the drastic reduction in retail prices against higher costing inventory.

The company further cited that Dubai crude averaged $116.45 per barrel in the first three months of 2012 compared to $108.19/barrel over the same period in 2013.

Petron’s revenues, on the other hand, climbed 50 percent to P112 billion after its consolidation with Petron Malaysia.

Also, the firm’s total sales volumes registered a 66-percent increase to 20 million barrels from 12 million barrels, still on the back of its acquisition of Petron Malaysia.

Petron also posted a 7-percent sales volume growth, which was driven by its network expansion program that increased the company’s presence in some underserved areas across the Philippines.

Currently, Petron operates the largest network in the industry with 2,070 service stations.

The company also converted 125 of the 550 service stations in Malaysia to the Petron brand. The rebranding program is expected to be completed by 2014.

Currently, the company’s $2-billion Refinery Master Plan Phase–2 (RMP-2) is 70 percent completed and will be finished by mid-2014.

RMP-2 will significantly increase production of gasoline, diesel and petrochemicals at Petron’s Bataan Refinery.

Reference: 

Miraflor, M. B.  (2013, May 7). Petron posts lower net income in first three months. Manila Times. http://www.manilatimes.net/index.php/business/top-business-news/46943-petron-posts-lower-net-income-in-first-three-months

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