Manila Bulletin

Up­graded re­fin­ery im­proves Petron’s gross mar­gin

- Business · Stocks & Markets · Oil Prices · Investing · Financial Markets · Finance · Petron Corporation

The up­graded oil re­fin­ery of Petron Corp. in Bataan will help the listed com­pany achieve the full po­ten­tial of its crude pro­duc­tion, which in turn, could give the com­pany a dou­ble-digit in­crease in its profit gross mar­gin and make it less vul­ner­a­ble to fall­ing global oil prices. Petron pres­i­dent and chief ex­ec­u­tive of­fi­cer Ra­mon Ang said Petron’s Bataan re­fin­ery, which cost the com­pany as much US$2 bil­lion to up­grade, will make the com­pany “very prof­itable” even amidst the volatil­ity in the world oil prices. “The Petron busi­ness, even at low oil prices, is still go­ing to be very prof­itable be­cause of the mod­ern­iza­tion of the re­fin­ery,” Ang said, adding that the re­fin­ery is ex­pected to re­cover as much as 98.7 per­cent of the crude. “We were ex­pect­ing the re­fin­ery to reach 98 per­cent re­cov­ery by next year in 2016 but it seems that as early as now, Septem­ber 2015, we are al­ready achiev­ing our tar­get ca­pac­ity and ef­fi­ciency,” he added. As a re­sult, Ang said the up­grade should boost the profit gross mar­gin of Petron by up to 20 per­cent. “For ex­am­ple, say your sales re­fin­ery is 500 bil­lion a year and be­cause you have ad­di­tional 20-per­cent, you will have ad­di­tional 100 bil­lion,” he cited. (MBM)

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