Final-FinMan-Requirement.docx - Pucot 1 1 Introduction Petron Corporation is the largest oil refining and marketing company in the Philippines and is a

Final-FinMan-Requirement.docx - Pucot 1 1 Introduction...

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Pucot 1 1. Introduction Petron Corporation is the largest oil refining and marketing company in the Philippines and is a leading player in the Malaysian market. We have a combined refining capacity of nearly 270,000 barrels-per-day, producing a full-range of premium fuels and petrochemicals to fuel the lives of millions of Filipinos and Malaysians. Leading through partnership and innovation, we power industries, drive economic growth, and fuel the future. 1.1. Objectives 2. Reviewing the company’s performance over the past periods. 3. Analyzing the current financial position. 4. Analyzing the operating and management efficiency, and its profitability. 5. Forecasting the profitability trends. 6. Forecasting financial failure. Our main objective in this financial statement analysis is to provide information about the financial position, performance, changes in equity, comprehensive income, cash flows and changes in financial position of the PETRON CORPORATION. 1.2. Company Profile Petron Corporation is the Philippines' leading refiner, marketer, and distributor of petroleum-based products. The company's Bataan refinery has a total output capacity of 180,000 barrels per day and produces a full range of petroleum products, including automotive fuels, diesel fuel, jet fuel, kerosene, lube and motor oils, and liquefied petroleum gas (LPG), many under the Petron and AutoGasul brands. The company also produces petroleum-based chemicals, such as naphtha and xylene. The company sells its products through two primary channels. Bulk sales go to large-scale customers, such as the power generation sector, and the industrial, construction, shipping, fishing, and airline industries. The company also operates its own chain of nearly 1,200 retail service stations--Petron controls more than one-third of that market in the Philippines, including nearly 30 Petron Express Center "super stations" along the North and South Luzon Expressways. In addition, Petron has rolled out its own convenience store format, Treats, located in its service stations, including the PEC super stations. In 2003, the company operated 26 Treats stores. Petron's two principal shareholders, each of which hold 40 percent of the company, are the Philippine government's Philippine National Oil Company and Saudi Aramco, based in Saudi Arabia. The remaining 20 percent of the company's shares are listed on the Philippine Stock Exchange and are held by more than 200,000 shareholders. However, at mid-2003, the Philippine government was considering selling its 40 percent stake in the company in a
Pucot 2 move to drive down the country's budget deficit. Petron is led by Chairman and CEO Nicasio Alcantara and President Motassim A. Al-Ma'Ashouq. Origins Petron's history stretches back to the 1930s. The Standard Oil Company of New York merged with Socony Vacuum Oil Company in 1931. Two years later, after acquiring the Atlantic Union Oil Company, the Standard Oil Company of New Jersey (which would ultimately emerge first as Esso and then as Exxon) merged its operations in the eastern hemisphere with Socony-Vacuum. The newly enlarged company, with interests throughout

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