For first week of this month, Philippine Stock Market is like a
Christmas again. The index breaches the highest peak of the last two
years. Almost any stock you pick is on green status, which simply means…
good profit. However, one giant still on sleep the Petron Corporation
(PCOR).
Petron Corporation (PCOR) was incorporated in 1966 as Esso Philippines,
Inc. and later renamed to Petrophil Corporation when the Philippine
National Oil Company (PNOC) acquired Esso. Every Filipino knows this
company; their business involves the refining of crude oil and the
marketing and distribution of refined petroleum products, mainly for the
domestic market. The Company sells a full range of refined petroleum
products, including industrial fuel oil, diesel, gasoline, liquefied
petroleum gas (LPG), jet fuel, kerosene, asphalt, solvent and mixed
xylene and propylene. But from last quarter of 2011, the price started
plunked from Php16.0/share to 10.0/share as of March 14, 2012.
Technically, RSI reading already now at 32 ranges.
“We have been able to sustain our growth momentum despite a year
wherein we saw contraction in local sales due to higher product prices,”
Ramon Ang, Petron chairman and chief executive officer, said. Petron
Corp. said it ended last year with a P8.5 billion net income from the
previous year’s P7.9 billion."'For 2012, the company expects higher
earnings following the upgrade in Petron’s Bataan refinery to enable the
manufacture of “more white products (LPG, gasoline, diesel) and scale
up petrochemical production significantly,” Ang added.
Petron Corporation announced a cash dividend of PHP 2.382 per share for
preferred shareholders for the second quarter of fiscal year 2012,
payable on June 5, 2012, with record date on May 18, 2012. The Company
also announced the cash dividend of PHP 2.382 per share for preferred
shareholders for the third quarter of fiscal year 2012, payable on
September 5, 2012, and the record date is August 16, 2012. The Company
also declared a cash dividend for common shares at PHP 0.10 each payable
on April 24, 2012, and the record date is April 2, 2012.
As international crude oil price continued increases, refining business
companies are on trouble. A principal capital needs to stretch for
operating cost from raw materials, processing, etc. But to keep in mind,
that when reversal posts… good fortunes can be foreseen.