PHILIPPINE NATIONAL POLICE AVAILS OF PETRON FLEET CARD

Despite the unprecedented volatility in the prices of crude oil and finished products plus a more competitive local market, the country’s leading oil refining and marketing company Petron Corporation posted a net income of P6.02 billion for 2006. This approximately matches the P6.05 billion income that the company posted in 2005.

Sales revenues reached P211.72 billion in 2006 or a 10.5% increase from 191.48 in 2005.

The company said that it experienced inventory losses amounting to P1.6 billion with the sudden and steep drop in crude and finished product prices in the last half of 2006. Foreign exchange gains and improvements in operating efficiencies, however, partly offset the inventory losses sustained by the company.

High prices likewise contributed to a contraction in domestic demand by 7.5% in 2006 as reported by the Department of Energy. Petron was able to do better than industry as its domestic sales fell by only 5.8% to 41.17 million barrels. This was offset by an increase in export volumes from 7.96 million barrels in 2005 to 10.91 million barrels last year or a 37% increase. Overall, sales volume increased by nearly 1% to 52.08 million barrels in 2006.

“In spite of a difficult and highly competitive business environment, we were able to maintain our profitability while retaining our focus to move our major programs forward,” Public Affairs Manager Virginia A. Ruivivar said.

The company continued to entrench its position in the market as it gained 0.8% points raising its total market share to 38.8% in 2006. The company continues to have the highest market share in all major oil industry segments including the Retail, Industrial and LPG trades.

The company also expanded its revenue base by tapping into non-traditional markets. For example, Petron-branded lubricants are now being sold in Cambodia and are slowly being introduced in Indonesia.

Earlier this year, Petron expanded its strategic partnership with Innospec, a leading global fuel additives supplier whose products are used in Petron’s world-class fuels, namely Blaze, XCS Plus, Xtra Unleaded and DieselMax.Petron is already constructing a $2.5 million fuel additives blending plant in Subic Bay that will serve as a supply hub for Innospec’s customers in the Asia-Pacific region.

The company also reported that the construction of its PetroFCC project is more than 50% complete and is expected to be on stream by the 1st quarter of 2008. The PetroFCC will allow the company to produce more high-value white products and make it the only local producer of the petrochemical grade propylene.  A BTX unit that will produce aromatics such as benzene and toluene and expand the company’s mixed xylene production capacity will also be constructed as part of the $300 million Refinery Master Plan.