In 1933, Socony Vacuum Oil Company and Standard OIL came together and formed the Standard Vacuum Oil Company. From that partnership came a Philippines-base oil company names Essoa Philippines. After several name and ownership changes throughout the years, the company finally became known as Petron in 1988.
Petron is a publicly held corporation (PCOR.PH), though 51% of the company’s stock is owned by the San Miguel Corporation (SMC – Food, Beverage, consumer goods company) with another 40% being owned by the Ashmore Group. Petron is the largest oil and gas company in the Philippines, providing approximately 35% of the country’s oil and gas requirements.
Petron is currently managed by a group led by Eduardo Cojuangco, Jr. (Chairman) and Ramon S. Ang (President and CEO). The company’s primary headquarters are located in Makati City, just inside the borders of Metro Manila. With an employee base of just over 9,200 employees nationwide, the company is primarily focused on the processing of crude oil into consumer good products and gasoline for transportation.
In recent years, Petron has gained international exposure due to its revolutionary refining process that is used to convert black products (fuel oil) into usable gasoline products. The company’s refinery, which converts approximately 180,000-barrel (29,000 m3)-per-day of this kind of low-grade crude, is the first refinery of its kind in the world.
Over the past 15 years, the automobile industry has exploded in many of the Philippine’s major cities. Correspondingly, Petron has seen explosive growth in its revenues and profits compared to two decades ago. For the year ended December 31, 2015, the company had revenues of 360.18 billion pisos (conversion rate is currently 46.9 pisos per $1 USD) with EBITDA of 23.09 billion pisos. It’s worth noting that the company experienced a 25% decrease in its sales revenue during the year, due in large part to increased competition and traffic concerns within the country’s largest cities.