Petron Corporation (PCOR) was incorporated in 1966 as Esso Philippines Inc. The company was later renamed Petrophil Corporation (Petrophil) after the Philippine National Oil Company (PNOC) acquired Esso.
Petrophil became the surviving corporation after the merger between the company and Bataan Refinery Corporation. In 1988, the company adopted its current name.
Primarily, PCOR engages in the business of refining crude oil and the marketing and distribution of refined petroleum. These include gasoline, naphtha, LPG, diesel, kerosene, petrochemicals, and jet fuel.
Its refinery in Limay, Bataan has a crude distillation capacity of 180,000 barrels.
Furthermore, the company is involved in the manufacturing of lubricants and greases through its blending plant in Pandacan, Manila.
Currently, the company has around 2,400 retail services in the country. It is selling its products to auto-LPG motorist and the transport sector.
PCOR also sells LPG under the brand name “Gasul” and “Fiesta” to household and other consumers through network dealership.
Market Cap: PHP 83.44 billion
Subsector: Electricity, Energy, Power & Water
- PCOR grew its revenues by 26.40 percent at PHP 434.62 billion in 2017 versus 2016.
- The company booked a net income attributable to parent of PHP 12.74 billion last 2017.
Petron Corporation’s Strong Performance
Earlier, Petron Corporation released its second quarter and first half financial performance for 2018. The company continued to show strong performance as it recorded consolidated net income of PHP 9.5 billion, 16 percent higher than the PHP 8.2 billion recorded in the same period in 2017.
Consolidated revenues of the company totaled to PHP 273.50 billion, a 32 percent growth versus the same period last year. The strong sales volume of its Philippine and Malaysian operations mainly drove the statistics.
Additionally, higher prices for crude oil and finished products contributed to the strong earnings growth. Benchmark Dubai crude oil averaged USD 68 per barrel in the first half of the year, 32 percent higher than that of 2017. Sales volumes grew to 54.4 million barrels.
Within the country, PCOR gearing on high-margin products paid off as it resulted to petrochemicals generating more sales. The records surpassed the volume last year by 14 percent.
Meanwhile, Aviation fuel and Gasoline also grew by 4 percent and 8 percent respectively.
International Operations Expansion
Malaysian operations also recorded a growth of 7 percent regarding sales volume. The company’s network expansion program contributed to the increase in retail volume.
Currently, Petron Malaysia has 620 service stations and has become a major player in the country’s highly competitive market.
Moreover, PCOR generated further gains from the recovery of the Malaysian Ringgit.
PCOR corrected today after initially breaking above the short and medium term moving averages. The 15 EMA and 20 SMA are poised for a bullish crossover with the 50 SMA. Collectively, they are acting as immediate support.
Volume though has not confirmed the bullish trend. The stock seems to be forming an ascending triangle, a bullish formation. It is currently marking a higher low, but no higher high is still in place.
Nonetheless, MACD appears bullish. RSI is also bullish but is currently at neutral levels. 8.80 is the estimated Support while 9.00 is the expected Resistance, followed by 9.20.
As of August 7, 2018, at 03:30 PM, the volume of PCOR is 556.95% of the previous trading day.
Remember the correlation between price and volume.
- bullish price + high volume = high sustainability (price)
- bullish price + low volume = low sustainability (price)
- bearish price + high volume = high sustainability (price)
- bearish price + low volume = low sustainability (price)
PCOR has a LOW-RISK level due to its risk percentage of 13.53%.
Foreign Fund Flow
PCOR registered a Net Foreign Buying worth P883,314.00 as of August 07, 2018.
On a 30-day trading period, PCOR is on a Net Foreign Selling worth PHP8,483,508.00.
Top 10 Players’ Sentiment
Trading participants of PCOR with a 100% Buying and Selling Activity as of Aug-07-2018 at 03:30 PM:
13 out of 31 participants or 41.94% of all participants registered a 100% BUYING activity
6 out of 31 participants or 19.35% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 8.9018
Top 10 Players’ Selling Average: 8.9065
The psychological average price of the top 10 players as of Aug-07-2018 is from 8.9018 to 8.9065.
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