Big Three oil companies remain most profitable

THE country’s Big Three oil companies remain the most profitable in the industry, according to the Department of Energy (DOE).

Data from the DOE showed that Petron Corp. posted the heftiest profit of P7.92 billion last year, followed by Pilipinas Shell Petroleum Corp. with P6.02 billion, and Chevron Philippines Inc., P1.43 billion.

Total (Philippines) Corp. and Liquigaz Philippines Corp. earned P375 million and P183 million, respectively. PTT Philippines Corp., however, lost P233 million in 2010.

Excluding Petron, the above companies are units of foreign oil firms.

So-called independent firms, which refer to those that put up shop after government deregulated the downstream sector in 1998, turned in smaller earnings vis-à-vis their bigger rivals.

Eastern Petroleum Corp. netted P5 million; Seaoil Philippines Inc., P417 million; and Pryce Gases Inc., P140 million.

In terms of profit margin, Pryce was tops with 6.47 percent, followed by Shell, 3.64 percent; Seaoil, 3.59 percent; Petron, 3.46 percent; Chevron, 1.96 percent; Total, 1.41 percent; Liquigaz, 1.31 percent; Eastern, 0.17 percent; and PTT, -1.32 percent.

Zenaida Monsada, DOE director, said the independent oil players have yet to offer their financial records to the department for public scrutiny.

“The smaller oil players did not offer. But I think this will be discussed with the review committee, considering scope, duration, etc. They are also required to comply with the report requirements of the DOE,” she said.

Members of the Philippine Institute of Petroleum earlier offered their books to the government in
response to various allegations of overpricing.

PIP members include Chevron, Liquigaz, Petron, PTT, Shell and Total, all of which have operations in other countries. Petron, the only homegrown company among the lot, earlier bought a refinery in Malaysia.

Energy Secretary Jose Almendras earlier said the department already submitted to oil firms a list of nominees to a third-party audit committee.

“PIP said it preferred that DOE suggest. So once we agree these are the representatives and then we will ask for nominations,” Almendras said.

The PIP member-companies agreed to the review of their books although they are already required to submit reports imposed by the DOE as mandated by appropriate provisions in the Downstream Oil Deregulation Law or Republic Act 8479, the financial protocols of the Bureaus of Customs and of Internal Revenue, as well as statutory submissions to the Securities and Exchange Commission. –Euan Paulo C. Añonuevo, Reporter, Manila Times