The Largest Oil Refiner in the Philippines Has Shown Great Improvement
Watch the video with Andrew Stotz or read a summary of the World Class Benchmarking on Petron Corporation.
Background
Petron Corporation is the largest oil refining company in the Philippines, and also a leader in the downstream oil industry. The company sells petroleum products and petrochemicals. It has nearly 1,900 service stations.
Its refinery is located at Limay, Bataan, and it has a crude distillation capacity of 180,000 barrels per day.
Business Description
PCOR’s principal business involves the refining of crude oil and selling a full range of refined petroleum products including gasoline, LPG, diesel, jet fuel, kerosene, asphalts and petrochemicals (benzene, toluene, mixed xylene, propylene and polypropylene). PCOR supplies nearly 40% of the Philippines’ oil requirements.
The company has the largest retail network of service stations in the country. It also has a network of LPG dealerships under the brands Gasul and Fiesta, as well as lube outlets. The Petroleum segment accounts for 99% of revenue and the remaining comes from Marketing and Leasing.
PCOR upgraded its refinery to a full-conversion refining complex, where all fuel oil is converted to higher-value products—gasoline, diesel and petrochemicals, making it comparable to highly complex refineries worldwide. Full operation of the refinery commenced in January 2016.
It operates in Malaysia via Petron Malaysia Refining & Marketing Berhad (PETRONM MK), which is 73% owned. It also exports to countries such as Japan, Singapore, South Korea, Thailand, Pakistan, and UAE.
World Class Benchmarking
Profitable Growth improved to #3 in the past 12 months.
There has been steady improvement in Profitable Growth since 2014. This means PCOR ranks better than 238 of 340 large Energy companies globally.
Profitability in terms of ROA improved to #4 rank, and has improved steadily since 2012. Growth remained its #2 rank, but has been volatile historically.
Profit margin improved to #4 from #5 and was the driver of the improved Profitability. We can also see that Growth has been driven by positive Margin change, as Sales growth has been ranked #6 for the past three periods.
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