Petron eyes higher refinery output amid supply pressures

PETRON CORP. said it is focusing on strengthening refinery operations this year to help improve fuel supply amid ongoing market challenges.

“Our refinery, we are strengthening it to boost the production of our refinery. We are also continuing the expansion of our gas stations everywhere,” Petron Chief Executive Officer Ramon S. Ang said during the company’s annual stockholders’ meeting on Thursday.

The oil refiner and retailer reported a 56% decline in first-quarter net income to P1.8 billion as higher product costs and lower refinery output weighed on earnings.

Petron said reduced refinery output was partly due to maintenance activities at its Bataan refinery and the continued shutdown of its Port Dickson refinery in Malaysia after Tropical Storm Senyar damaged its product jetty in November last year.

“We are also ensuring that our plants abroad, like the one in Malaysia, where the pier is damaged, are being addressed. We are fast-tracking the repair of that,” Mr. Ang said.

For the January-to-March period, revenues rose 27% year on year to P246 billion, while operating income fell 36% to P6.1 billion, the company said in a statement on Tuesday.

During the stockholders’ meeting, Petron also announced leadership changes, with John Paul L. Ang succeeding Mr. Ang as company president.

Mr. Ang will serve as president and chief operating officer, while Ramon Ang will remain chief executive officer.

Shares in Petron fell six centavos, or 2.18%, to close at P2.69 apiece on Thursday. — Ashley Erika O. Jose