Philippine’s Petron holds off expansion

Volatility in global crude prices and rampant smuggling are hurting market competition, denounced Petron’s CEO in a press conference.

Petron Corp., Philippines’s largest oil refiner, will put on hold its expansion plans amid a challenging business environment, announced its president and CEO Ramon Ang.

Ang explained that Petron’s income this year may hit just around P8 billion to P9 billion - half of an earlier net income projection of P18 billion for this year. Petron’s earnings in 2018 reached P7.1 billion.

Ang announced in a press conference that Petron’s business is facing headwinds from the volatility in global crude prices and rampant smuggling. Ang also noted that many small “white” fuel stations - roughly 37% of the market - are selling unknown brands of oil products at much cheaper prices, which directly hampers Petron’s sellings.

Given this situation, Petron will put on hold the planned expansion of its Bataan refinery as well.

Despite the difficult business environment for Petron Philippines, Ang stated that Petron Malaysia – which accounts for 40% of revenue – is saving the day for the group.