March 25, 2014

PCOR posts 187% hike net income in 2013

In a press statement, Petron Corp (PCOR) said its consolidated net income in 2013 grew 187% YoY to P5.1b on just a 9% rise in revenues. PCOR said sales volume grew 10% YoY to 81.5m barrels on the back of higher sales for its Philippine and Malaysian operations. It claimed to have maintained its nearly 37% market share as it added more than 200 service stations during the year to 2,200 branches. Domestic sales volume grew by about 3%.

Our take: We have yet to determine the reason for the large discrepancy between revenue and net income growth as PCOR has yet to release the details of its full-year results. However, we note that in its 9M13 results, net income also grew 8.6x to P4.4b but this was largely aided by P1.9b in unrealized forex gains (vs. the P488m forex loss in 9M12) and a 24% decline in interest and other financing charges.

At any rate, the company is expecting a major boost to its earnings by 2015 upon the completion of the US$2b Refinery Masterplan Phase 2 which should enable it to significantly increase the production of high-value white products and petrochemicals. – WealthSec