MANUFACTURING MANUFACTURING OTHERS ASIA-PACIFIC PHILIPPINES

Leading from the front

Article - November 17, 2011

Petron Corporation’s profits have helped the whole country – but there’s more work to be done

Philippine GDP grew 7.3 per cent in 2010 to US $188.7 billion, and Petron Corporation (Petron), the largest oil refining and marketing company in the Philippines, believes it has played a key role in boosting the country’s economic progress.

Ramon S. Ang, Petron Chairman and CEO explains: “Supplying nearly 40 per cent of the country’s oil requirements, Petron posted a US $78 million net income for the first quarter of 2011, generating income and tax revenue for the Philippine economy as well as creating more jobs through the establishment of more service stations nationwide. Also, the local production of oil and petrochemicals is essential to the country’s growth, fueling vital sectors such as transport, manufacturing, and power generation. We also provide raw materials used in everyday products such as food packaging, home appliances and car parts, among others.”

Petron, a long-standing business in the Philippines established in 1933, is a major player in the local downstream market. Petron’s Integrated Management Systems-certified refinery in Limay, Bataan, has a rated capacity of 180,000 barrels a day. It processes crude oil into a full range of petroleum products including LPG, gasoline, diesel, jet fuel, kerosene, industrial fuel oil and solvents, which are distributed through its nationwide network of 32 depots. Furthermore, through over 1,700 service stations, it retails gasoline, diesel, and kerosene to motorists and public transport operators, and has also established its convenience store brand “Treats” at its service stations.

Despite the strength and growth of the Philippine oil industry, however, Mr. Ang believes there is much work to be done. “The petrochemical industry here in the Philippines is very underdeveloped. We believe that the local market is big enough to warrant the establishment of a more developed petrochemical industry similar to that of Thailand. Thailand is now self-sufficient and in fact exports petrochemicals. It is a model that we would should take a serious look at and emulate."