Eastern Petroleum aims for 100 stations after record revenues in 2011

MANILA - Eastern Petroleum Corp. plans to double its retail network after hitting record sales a year ago.

Fernando L. Martinez, Eastern Petroleum chairman and chief executive officer, said the company's revenues rose 9.3 percent from P3.2 billion in 2010 to P3.5 billion in 2011, the highest since it entered the market 15 years ago.

Its net income however fell to P41 million, less than half its P100 million target owing to the company's aggressive property acquisitions.

Martinez said the company will increase its fuel stations to 100 from the current 40 to support its growth momentum.

Of the target, Eastern Petroleum already identified 30 new sites that will be completed withinin the first half of 2013.

"These are all part of P500 million capital expenditures for 2012 financed by both internally generated revenue and bank credits reported by the company at the beginning of the year," Martinez said.

Eastern Petroleum's retail expansion is geared towards the Visayas and Mindanao although the company plans to put up another oil terminal in Luzon to support its operations.

Martinez said the company's expansion aims to boost its presence in the least served areas of the country, "thereby contributing in market efficiencies beneficial to consumers."

source: interaksyon.com

Power Rates, Fuel Prices Up

MANILA, Philippines — Consumers will face increases in electric rates and oil prices this month.

The Manila Electric Company (Meralco) Tuesday announced that power generation charges this month will be higher by P0.11 per kilowatt-hour (kWh) to P5.57 from P5.46 per kWh, mainly due to soaring prices in the Wholesale Electricity Spot Market.

Meanwhile, Pilipinas Shell, Petron Corp. and Chevron Philippines (formerly Caltex) raised their respective prices for premium gasoline (including unleaded) by P0.25 per liter, regular gasoline by P0.60 per liter and both diesel and kerosene by P0.30 per liter.

Total Philippines increased its prices of unleaded by P0.25 per liter, regular by P0.60 per liter and diesel by P0.30 per liter.

In a press statement, Meralco said that cost of procurement from the WESM climbed substantially by P4.29 per kWh in January. The impact of such electricity spot market purchases contributed up to P0.09 per kWh in the generation charge hike for this billing cycle. All other suppliers contributed the balance of the rate uptrend.

For those in the 100 kilowatt-hour consumption threshold, the cost impact would reach around P11.

“Charges from the WESM increased by P4.29 per kWh, contributing 9 centavos of the 11-centavo per kWh increase in generation charge,” the company said.

Prior to this upward adjustment, Meralco consumers temporarily enjoyed cost reductions that totalled P0.32 per kWh during December and January billing months.

At the same, Eastern Petroleum Philippines, an independent oil company, was yet to officially announce a price adjustment as of press time but its chief executive officer (CEO) said that it would move “later in the day”.

“We’ll move by the same level later in the day,” Eastern Petroleum CEO Fernando Martinez said.

Tuesday’s price increase was the fifth on petroleum products so far this year.

The average pump prices in Metro Manila as of Tuesday stood as follows: diesel, P44.50; unleaded, P54 and kerosene, P53.

Local oil companies are coming off back-to-back fuel price rollbacks, wherein diesel price dropped by an accumulated P1.70 per liter, premium by P0.35 per liter, regular by P0.40 per liter and kerosene by P1.60 per liter.

A price hike this week was foreseen as early as last weekend after the previous downtrend in international market went on reverse.

Meralco said adjustments in generation charge are a function of supply and demand as well as the cost movements of other key factors experienced by power suppliers, such as fuel and foreign exchange rates.

Beyond the WESM-triggered adjustment, Meralco similarly indicated that its supply procurement from state-run National Power Corporation (NPC) had also been higher by P0.04 per kWh “because of the shift to more expensive dry-season rates.”

It emphasized though that “NPC’s overall impact on generation charge was similarly mitigated by Meralco’s increased purchases during off-peak periods, when costs are relatively cheaper.”

source: mb.com.ph