Petron’s expansion program on second phase

PETRON Corporation, the country’s leading oil refiner, has completed the first phase of its expansion program for its retail network.

Ramon Ang, Petron chairman and CEO, said that 200 new retail stations were completed from January 2009 up to January 2010 across the country bringing its total service station to 1,463.

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Ang said they are set to start this year the second phase of their retail expansion to maintain their dominance in the country.

“We intend to pursue our network expansion program to bring Petron’s first-rate fuel products and quality services closer to Filipino motorists,” he added. “This is also in line with our strategic initiative to strengthen the company’s core business and ensure our market dominance over the long-term.”

At the heart of the company’s expansion program is the establishment of Petron service stations in far-flung areas as the framework for volume building.

Ang explained the concept is based on pre-fabricated models that can start with 2-3 product pumps but easily expandable as demand increases in growth centers, real estate development sites and provincial areas.

Of the 200 Petron service stations opened last year, 84 are located in Luzon, 48 in Visayas, and 68 in Mindanao.

Currently, Petron control 30 percent of the total oil industry service station count and this is expected to further increase in the next few years.

Last week, Petron announced that it is allocating P5 billion in the next five years for the construction of its retail stations under the second phase of their expansion program to further enhance its market leadership.

Apart from the expansion program, Ang said the company is rolling out more services at its various gasoline stations to give customers more service convenience, which includes bank ATMs, money transfer, bill payments, and additional food and service locators.

From January to September 2009, the company posted a net income of P3.37 billion continuing its strong recovery from losses suffered in 2008.

The income recorded in 2009 was 21 percent higher compared to the P2.78 billion income posted in 2008 over the same period.

Petron is also planning to construct a 70 megawatt coal fired power plant in Limay, Bataan to complement its refinery.

Funding for the plan coal-fired power plant construction will be sourced from the issuance of the preferred shares where they target to raise P10 billion.

Petron has a refinery in Bataan, which has a total capacity of 180,000 barrel-per-day and produces a full range of petroleum products to supply nearly 40 percent of the country’s total fuel requirements. (MSN/Sunnex)