MANILA, Philippines - Oil industry giant Petron Corp. has secured the approval of corporate regulators to change its articles of incorporation.
Petron can now officially generate and sell electricity in line with its $2-billion Bataan refinery upgrade.
In a disclosure, Petron said it received the Securities and Exchange Commission’s (SEC) approval for the “amendment of the primary purpose of the company to include the generation and sale of power.”
In the revised primary purpose, Petron can now “purchase, create, generate or otherwise acquire, use, sell, suplpy or otherwise dispose of, electric current and electric, stream and water power of every kind and description.”
Petron is spending spend around P10 billion for a 70-megawatt (MW) power plant that will provide electricity for its refinery.
By generating its own power needs, the country’s largest oil refiner is expected to save as much as P1 billion in electricity bills every year.
Petrons’s refinery in Limay, Bataan is undergoing a $1.8-billion expansion that will be completed in 2015. It will increase the output of petroleum fuel and petrochemicals used to make plastic.
First half income of Petron sank to P432 million compared with P6.04 billion a year ago due to losses in its Malaysian operations.
To date, there are around 2,000 Petron service stations nationwide, with hundreds more in the pipeline.
Petron claims to be the industry leader in the country with a 38.1-percent market share as of May 2012.
Conglomerate San Miguel Corp. (SMC) owns 68 percent of Petron.
SMC, in the last few years, has diversified its core portfolio of food, beverage and packing by expanding its participation in industries such as petroleum, power generation and distribution, mining and infrastructure.