Petron sees double-digit income growth

ABS-CBN News

Posted at Jul 12 2011 06:32 PM | Updated as of Jul 13 2011 02:32 AM

MANILA, Philippines - Petron Corp., the country's largest oil refiner, expects its net income to grow by double digits this year, boosted by its petrochemical business.

"We project a double-digit growth," Petron president and CEO Ramon Ang said at the sidelines of the company's stockholders meeting.

"I'm sure it's better than last year. We're earning more from the petrochemical business... I think the petrochemical side would give [our income] at least a 30% boost," he added.

However, Ang said the company was seeing flat growth for the second quarter of 2011.

For the first quarter of this year, Petron posted a net income of P3.4 billion, 79% higher than its P1.9 billion income in the same period of 2010.

Financing

Ang, meanwhile, said they are looking to raise funds for the projects they lined up over the near term.

"We are in talks with some banks for a possible placement. We are supposed to disclose either today or tomorrow. I think it's Standard Chartered, UBS, Goldman, ATR, Security Bank," he said.

Asked about the timetable of the fund-raising, he said: "No definite time yet. We're still studying it. We have only proposals as of now."

"When there is an opportunity we will proceed with it."

Ang said Petron has earmarked $2 billion for capital expenditures until 2014.

Expansion

Petron is expanding its refinery in Bataan to boost capacity and allow the company to "digest" other types of crude oil.

The expansion project is targeted for completion by 2014.

Petron also commissioned in February its polypropylene plant, which has an initial capacity of 160,000 metric tons of polypropylene per annum.