Petron Corp., the country’s largest oil refiner and retailer, could expect a net income of around P4.2 billion for 2009, according to a company official.
Petron CFO Emmanuel E. Eraña said during a briefing Friday that the company should be “back in the positive” for 2009, if the P3.4-billion net profit it posted in the first nine months of last year would be any indication.
Eraña explained that the growth in last year’s income was due to the relative steadiness of oil prices as well as measures taken to maintain low inventory, which led to “normalized” sales.
He added that there had been a continuous increase in the company’s income over the last 10 years, “except for that one time in 2008, which caused everybody engaged in the fuel business to lose money.”
In 2008, the local oil industry saw a sudden surge in the prices of crude oil to a high of over $140 a barrel in July and a sudden dive in December to about $40 a barrel.
The increase in the oil company’s net income may be attributed to substantial investments made by Petron in 2009, which included, among others, the establishment of 171 additional service stations, worth some P1 billion, and the upgrade of its refinery in Bataan.
For 2010, the firm targets to continue its investments and is currently planning to raise P10 billion from the issuance of preferred shares.
About P5 billion to be generated from the planned issuance would be allocated for the construction of a 70-megawatt coal fired power plant, Eraña reported.
He added that the firm expects to save P1 billion from the use of its own power plant.
Petron also plans to allocate another P1 billion for its retail market expansion this year, and another P3.9 billion for the repayment of short-term debts.
http://business.inquirer.net/money/topstories/view/20100205-251489/Petron-expected-to-post-income-of-P42B-in-09
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