BUSINESS OVERVIEW
PETRON CORPORATION is the largest oil refining and marketing
company in the Philippines. Supplying nearly 40% of oil
requirements, our world-class products and quality services fuel the
lives of millions of Filipinos.
Petron Corporation (Petron)
It is a Philippines-based company. The Company is the refiner and
marketer of petroleum products in the Philippines. As of December 31,
2010, Petron had seven subsidiaries:
1. New Ventures Realty Corporation engaged in acquiring and
developing land;
2. Petrogen Insurance Corporation engaged in serving the
insurance requirements of Petron and its allied business
partners, such as contractors, suppliers and dealers;
3. Overseas Insurance Corporation engaged in expediting the
reinsurance of Petron's insurable interests as covered by Petrogen Insurance Corporation;
4. Petron Foundation, Inc. engaged in functioning and operating as a charitable and research
foundation;
5. Petron Freeport Corporation engaged in selling fuels, including gasoline, kerosene, diesel,
lubricants and greases, as well as operate retail outlets, restaurants, and convenience stores;
6. Petron Marketing Corporation is engaged in the fuel business, and
7. Petron Singapore Trading Pte. Ltd. established in 2010.
Corporate Evolution
Petron Corporation's over 75 years of existence in the
Philippines is a further testament to its commitment to
providing quality products and services. Petrons colorful
history dates back to September 7, 1933 when the Socony
Vacuum Oil Company of New York and the Standard Oil
Company of New Jersey formed the Standard Vacuum Oil
Company (Stanvac). The end of the venture in the early '60s
split the marketing and refining interests of the company
between Esso and Mobil. In 1973, Esso sold its business to the
government which became the Philippine National Oil
Company or PNOC. Subsequently, Mobil also sold its share of the refinery to PNOC. The oil refining and
marketing units in PNOC were eventually merged to form Petrophil, which was later renamed as Petron.
AS part of the government's privatization program, PNOC sought a strategic partner that would give
Petron a reliable supply of oil, plus access to state-of-the-art refining technology. The result was a
partnership with the world's largest oil producer, Saudi Aramco. On February 3, 1994, PNOC and Aramco
Overseas Company BV signed a share purchase agreement that gave both a 40% stake in Petron. The
remaining 20% of Petron shares were sold to the public. In May 2008, the Ashmore Group acquired
Aramcos 40% stake in Petron. Following a mandatory tender offer, an additional 10.57% was acquired
by the London-based fund. The PNOC likewise sold its share to another Ashmore subsidiary. Such
divestment resulted in the Ashmore Group holding approximately 90.57 percent of the outstanding
shares of the company.
Petron Products
Petron's leadership extends across various segments of the downstream oil sector capturing
over 38% of the total market. Petron sell fuel oil and diesel in bulk to industrial customers in power
generation, construction, land and marine transports, fishing, and various manufacturing sectors. They
also supply jet fuel to airlines, including Philippine Airlines and other international and domestic carriers.
Petron retail gasoline, diesel, and kerosene to motorists, public transport operators through our more
than 1,400 retail stations. Petron Gasul, the leading LPG brand is likewise available to consumers
through our nationwide dealership network. Petron likewise started to embark on the production of
high-value petrochemical products, a strategic decision which further improves not only Petron's
financial viability but likewise its deliberate positioning in the regional market.
Black fuels
- Regular IFO
- Intermediate fuels
- Special fuel oils
- Low sulfur fuel oil
White fuels
- Jet A-1
- Diesel fuels
Automotive Diesel Oil (ADO)
Industrial Diesel Oil (IDO)
- Gasoline fuels
93 RON Unleaded Gas
95 RON Unleaded w/ Valvemaster
97 Ron Unleaded Gas
Lubes & Greases
- Automotive oils
- Gear & Transmission oilks
- Hydraulic oils
- Industrial oils
- Marine oils
- Process oils
- Automotive & Industrial Greases
Asphalts
Toluene
Petron Services
1. Petron Car Care Services
The Petron Car Care Center (CCC) offers various automotive maintenance and repair services to the
motoring public, such as:
- - Lubrication (i.e. change oil, etc.)
- - Engine Works (i.e. engine tune-up, top cylinder overhauling, etc.)
- - Chassis Repair
o i. Brake system maintenance (i.e. brake cleaning, brake fluid replacement, brake pads
replacement, etc.)
o ii. Suspension repair (i.e. wheel alignment, shock absorber replacement, tie-rod
replacement among others)
o iii. Transmission Repair (i.e. transmission concerns for automatic and manual vehicles, clutch
replacement, pressure plate and bearing repair, etc.)
- - Tire services (i.e. alignment, balancing, vulcanizing, tire rotation, etc.)
- - Washing and undercoating
- - Cooling system maintenance (i.e. radiator repair, replacement, flushing, etc.)
- - Air conditioning and electrical repair and maintenance*
*on selected stations only
Aside from carrying the full line of Petron lubricants and specialty products, the CCC outlets employ
well-trained technicians who make use state of the art tools and equipment to restore and ensure that
your car is always in top condition.
CCC customers can then be assured of casa-like quality of parts and service at affordable costs.
2. Petron Lube Center
The Petron Lubes and Specialties Center (PLSC) provides various automotive maintenance and repair
services to motorists, such as:
- Suspension Repair
- Engine tune-up
Equipped with Petron lubricants and specialty products, the lube center has skilled mechanics to restore
and ensure that your vehicle is in excellent form.
3. Petron Motocenter
The Petron MotoCenter is a maintainance and repair shop that specializes on motorcycles. Staff with
fellow biking enthusiasts and prepared with Petron lubricants and specialty products, the MotoCenter is
geared to fix and keep your motorbikes good as new.
Sustainability Journey
A. Petrons Conservation Effort
Petron's sustainability continues to be represented by a propeller
in motion.
Our sustainability priorities represent our integrated approach to
realize our vision to be the leading provider of total customer
solutions in the energy sector and its derivative businesses, and
our mission to promote the best interest of all our stakeholders
and the environment.
ECONOMIC RESPONSIBILITY. We commit to the creation of long-term economic value and mutual
advantage for our company and its shareholders
ENVIRONMENTAL STEWARDSHIP. We commit to business practices that help protect the environment
knowing that this accordingly safeguards the interests of our company and its stakeholders over the long
term.
OPERATIONAL EFFICIENCY. We commit to the continuous improvement of our operations and in our
supply chain, guided by global efficiency standards.
HEALTH AND SAFETY. We commit to fully abiding by laws and regulations that ensure the health and
safety of personnel, contractors, and surrounding communities, with the ultimate aim of going beyond
compliance.
PEOPLE MANAGEMENT. We commit to the implementation of personnel development programs and
practices that ensure the success of our company is reflected in the lives of the people that work hard
for it.
STRATEGIC PARTNERSHIPS. We commit to building on shared strengths with business partners and
other stakeholders in our quest to serve customers better while creating more value for our investors.
PRODUCT AND SERVICE INNOVATION. We commit to investing in research and development for the
continuous enhancement of our products, services, and processes in order to delight our customers,
achieve competitive advantage, help shape the industry, and fuel environmental protection.
ADVOCACY AND SOCIAL RESPONSIBILITY. We commit to ensuring our company's positive contribution
to the economic and social needs of our surrounding communities through education,
entrepreneurship, health, and livelihood programs. We likewise commit to support the UN Millennium
Development Goals (MDG) and the national government's poverty alleviation agenda.
B. Health, Safety and Environment
We at Petron Corporation are committed to
protecting and preserving the natural
environment, and to promoting the health,
safety, and security of our people, our
customers, suppliers, contractors, and the
general public. This commitment is key to the
long-term sustainability of our business and
governs the way we operate.
Consistent with this core commitment:
o We will strive to comply with all government regulations relevant to the promotion of health and safety
and the preservation of the environment.
o We will adopt operational procedures, provide the necessary resources and management support,
striving to involve all our stakeholders each step of the way.
To ensure that we live up to these commitments:
o We will follow stringent goals and targets against which we will measure our performance.
o We will follow and develop strategies that will allow and encourage us to improve the ways we
conduct our business.
C. Scorecards
1. ECONOMIC PERFORMANCE
We are committed to ensure the long-term viability of our business so we can continue to enhance
shareholder value, increase our contribution to domestic economy, and make a positive impact in
communities where we operate.
MILESTONES:
Attained the results of the value-creating initiatives that we embarked on with the entry of San Miguel
Corporation
Maintained our position as the country's largest oil refining and marketing company committed to
further enhance our core businesses and develop interests in subsidiaries, associates, and other
businesses
Increased production of fuels and petrochemicals
Further sustained the company's growth through major projects such as service station network
expansion and Petron Bataan Refinery upgrade
Increased the amount and scope of our social investments throughout the country
2. ENVIRONMENTAL PERFORMANCE
We are committed to ensure a sustainable future for our business and the country by managing the
environmental footprints of our company-owned facilities and our supply chain.
MILESTONES:
Implemented water management initiative at the Petron Bataan Refinery to manage water resources
and minimize our water footprint
Implemented a waste exchange program with Bataan 2020 for spent caustic wastes as well as an
integrated solid and hazardous waste inventory and management program at the Refinery
Secured accreditation of Petron's Pollution Control Officer (PCO) Training Course from the Department
of Environment and Natural Resources-Environmental Management Bureau (DENR-EMB)
Received Clean Bill of Health from DENR-EMB for eight barangays affected during the 2006 Guimaras oil
spill
Achieved relevant international quality, environmental, health, and safety third party certifications for
the Bataan Refinery and majority of Petron terminals and depots
Actively advocated the practice of integrated coastal and beach management through strategic
programs in Bataan and Boracay
Actively participated in the global Earth Hour celebration and localized Earth Hour activities in Petron
facilities nationwide
Actively heightened awareness and appreciation of environmental policies, regulations and practices
among Petron service station dealers , local government officials, and Petron employees
PETRON FOUNDATION
As the country's largest oil refining and marketing company, Petron continuously aspire to be socially
responsible and good corporate citizens. Thus, they integrate sustainability and corporate social
responsibility (CSR) programs into our business prospects.
Through Petron Foundation Inc. (PFI), our CSR arm, they launch and maintain various initiatives that
address national concerns in essential areas such as education, environment, health and human
services, and other advocacies in partnership with the communities, local and national government
units, like-minded organizations, and our employee-volunteers.
Ultimately, their goal is to contribute to a brighter future for Filipinos by fueling H.O.P.E. (Helping the
Filipino Children and Youth Overcome Poverty through Education), our flagship program in education.
Corporate citizenship and social responsibility are values firmly held in Petron Corporation. This is
highlighted in the companys corporate mission: caring for the community and the environment. In
pursuit of this mandate, Petron Foundation implements programs to secure the future of the Filipino
children and fuel their hopes through corporate social responsibility endeavors in the areas of
education, environment, health & human services and advocacy.
A. Sharing the gift of education
Tulong Aral ng Petron is a long-term and strategic initiative that helps send poor children to school, keep
them there, and make sure they learn.
We started Tulong Aral in 2002 to give scholars the opportunity to complete elementary education. It
has since provided scholarships to top scholars in high school and college.
1. Tulong Aral Ng Petron
Tulong Aral scholars are enrolled from Grades 1 to 6 in partner schools in the National Capital Region
(Caloocan, Malabon, Navotas, Valenzuela, Manila, Pasay, Mandaluyong, Quezon City, Paraaque,
Taguig, Pateros, Pasig and Las Pias) and in the Mindanao region (Davao, South Cotabato, Sarangani,
Iligan, Misamis Oriental and Zamboanga).
Our scholars enjoy benefits, including the provision of books, school supplies and uniforms as well as
daily meal allowances. We also give capability building and livelihood programs for their parents.
Our partners in Tulong Aral include the Department of Social Welfare and Development (DSWD) and the
Department of Education (DepEd), with World Vision Development Foundation in implementing the
program. Our partnership with SM Retail, Inc. allows for the efficient distribution of school supplies to
the scholars.
Support programs for Tulong Aral include the conduct of mentoring sessions for scholars by students
from the Ateneo de Manila High School.
2. Tulong Aral High School Scholarship
Petron is supporting the education of its top Tulong Aral elementary graduates through secondary
school under the Tulong Aral High School Scholarship Program, a partnership among DepEd, DSWD, and
Land Bank of the Philippines.
The program is being implemented for Petron by the Philippine Business for Social Progress (PBSP), with
the Philippine Psychology and Research Training House providing the research and training component.
To further their scholars' development, PFI and PBSP conduct a series of one-day leadership and life
skills workshop "The Best U Can Be" to better prepare them for their graduation from high school.
Employee volunteers from Petron and Land Bank help facilitate the learning sessions.
3. Tulong Aral College Scholarship
Through the Tulong Aral College Scholarship, Petron makes ten scholarship slots each in a Bachelor's
degree in Engineering, a Bachelor's degree in a four-year course relevant to Petron's business, and a
Technical/Vocational course for Tulong Aral seniors who qualify in the schools' admissions procedures.
We see this as the next step in our road map for an integrated poverty alleviation strategy, with the
college scholars eventually earning an opportunity to be employed in Petron.
4. Petron Schools
With a dearth of classrooms in the country, we build Petron schools to give children access to venues for
learning, especially in the most remote areas in the Philippines.
Starting in 2002, we have put up and inaugurated Petron schools in the following locations:
Misamis Oriental
Davao City
Zamboanga City
Basilan
Bataan
Sarangani
Mandaue City
Iligan City
Jimenez
Nasipit
Tawi-Tawi
Sultan sa Barongis and Datu Paglas in Maguindanao
A partnership with the United States Agency for International Development/Philippines (USAID) has
allowed for the construction and repair of classrooms in Region 9, Region 12, and the Autonomous
Region of Muslim Mindanao. By the end of 2011, we were able to build a total of 108 new classrooms or
59 two-classroom USAID-Petron Schools, furnished with comfort rooms, student desks, teacher's tables
and chairs, bookshelves and wall fans and refurbished 480 existing ones, or 588 classrooms in all.
Another partnership with USAID, under the International Youth Foundation-Education and Livelihood
Skills Assistance 2 (IYF-ELSA2), is the Educators Professional Development Program. It was implemented
under the International Youth Foundation-Education and Livelihood Skills Alliance (ELSA) composed of
the Philippine Business for Social Progress (PBSP), Ayala Foundation, and Consuelo Foundation. Through
this large-scale capability building program for teaching English, Science and Math covering Region 12,
we are able to train nearly 4,500 elementary school teachers through our partnership with the
International Youth Foundation, under ELSA and Notre Dame of Marbel University in Koronadal City.
Furthermore, 278 school administrators were given support through management and leadership
trainings.
5. Brigada Eskwela
Petron continues to be an active participant in the annual Brigada Eskwela or National Schools
Maintenance Program by DepEd. We have engaged volunteers to help repair, refurbish, and rehabilitate
public schools within their areas of operation.
6. Reading Programs
Together with Sa Aklat Sisikat Foundation (SAS), we build a nation of readers. SAS works with public
schools all over the country, providing resources to motivate Grade 4 students to make reading a part of
their daily lives. A parallel effort, the Petron Gurong Kaakbay Conference, helps sustain the reading
program and focuses on enabling public school teachers to serve as reading advocates and change
agents. The program offers additional in-depth training and support for groups of highly motivated
teachers from partner schools. Enrichment Workshops, a component program of Petron Gurong
Kaakbay, are conducted to further the learning of teachers and principals.
7. Entrepreneurship Education
Our contribution to sharing the gift of education continues to extend to the secondary and tertiary
levels, with entrepreneurial education as its focus.
High School Level: Through the Youth in Entrepreneurship and Leadership Development or YIELD
program, third year students of Muntinlupa Business High School (MBHS) undertake a 240-hour on-the-
job training at Petron service stations. Their training includes learning the ropes in operations at the
forecourt and back office, as well as the rudiments of food service and business in the service station
locators. Their knowledge is enhanced by skills and values learned from weekly reflection sessions
conducted among their fellow trainees.
College Level: The Junior Achievement Philippines, Inc. (JAPI) mini-company is a program on enterprise
education, where participating university students undergo training on managing a companyfrom the
time it is organized until its dissolution. Petron employees serve as JAPI advisers for marketing,
production, and finance. The program, which begins in August and ends in March, has the equivalent of
six units in the schools' curriculum.
8. Project H.O.P.E. - Helping Filipinos Overcome Poverty through Education
It is focused on providing a specialized learning program for the underserved children and
youth. For the children, the focus will be on sending elementary-aged kids from Grades 1 to 6, keep
them there, keep them well, and make sure that they learn. Support programs for the
parents are also provided. Parallel to this is the building of Petron Schools in areas where the need
for a venue for education is greatest. The program for the youth, on the other hand, will be focused
on promoting entrepreneurship among the youth.
B. Nurturing Nature
Petron recognizes that environmental stewardship is a fundamental task in mitigating the impact of its
operations over the long term.
1. Bataan Integrated Coastal Management Program
The Bataan Integrated Coastal Management
Program (BICMP) is a comprehensive and long-term
program which aims to resolve multiple marine and
coastal use pressures through public-private
partnerships. It aims to serve as a catalyst in
rehabilitating Manila Bay.
BICMP adopts the United Nations Development
Programme-International Maritime Organization's
Regional Partnerships in Environmental
Management for the Seas of East Asia (UNDP-IMO
PEMSEA) integrated coastal management (ICM)
approach and strategy.
It also conforms to Executive Order No. 533 which adopts ICM as a national strategy for the sustainable
development of the country's coastal and marine environment and supports UN Millennium
Development Goal #7 of "ensuring environmental sustainability" and the Global Compact Principles on
the environment
The BICMP's major accomplishments include the development of the Bataan Sustainable Development
Strategy (BSDS) and the Bataan Coastal Land and Sea Use Zoning Plan (CLSUZP), which provide the
blueprint for the long-term management of the province's natural resources and its implementing
mechanisms and regulatory framework. The CLSUZP is the first of its kind to be published in the
Philippines. It continues to be used as reference in the development of a similar plan for the entire
Manila Bay area.
2. Boracay Beach Management Program
Petron's success in Bataan is being replicated in Boracay, the Philippines' premier tourist destination.
Petron and San Miguel Corporation (SMC), in partnership with the Province of Aklan, the Municipality of
Malay, and Boracay Foundation, Inc. (BFI) launched the Boracay Beach Management Program (BBMP)
on September 25, 2010. Together, we proactively take part in preserving the island's pristine natural
environment.
BBMP focuses on seven priority programs that address the critical needs of the island: water and waste
water management; hazard prevention; coastal resource management; watershed management; solid
waste management; effective governance; and information, education and communication. It has since
been institutionalized by the Sangguniang Bayan of Malay through S.B. Resolution No. 023 "Adopting
the Boracay Beach Management Program of the Local Government."
To ensure the implementation of BBMP, a technical working group under the Boracay Beach
Management Council was established. Below are its members:
Local Government of Malay
Petron Corporation
San Miguel Corporation
Boracay Foundation, Inc.
Department of Environment and Natural Resources (DENR)-Region 6
Boracay Island Barangays and Schools
Boracay Island Water Company
Philippine Chamber of Commerce and Industry (PCCI)-Boracay
Department of TourismBoracay
Aklan Provincial Tourism Council
Maritime Command (MARICOM)
Philippine Army
Philippine Coast Guard
Philippine National Police
Tourism Infrastructure and Enterprise Zone Authority (TIEZA)
TUBI
3. Adopt-An-Estero/River Program For Marikina River And The National Greening Program.
In partnership with the Department of Environment and Natural Resources (DENR) and City Government
of Marikina, Petron supports the Adopt-An-Estero/River Program for the Marikina River and the
National Greening Program.
Through this program, we undertake environmental improvement on vital water tributaries leading up
to Marikina River, starting with the four-kilometer Concepcion Creek. The program provides for two
major components: engineering (through the dredging of these creeks and the rehabilitation of their
banks and easements) and community engagement (through information and education campaigns,
community mobilization activities, and trainings for concerned stakeholders in support of the program).
Our participation in the Adopt-An-Estero program, as well as in the government's National Greening
Program, is nationwide in scope. Petron employees and partners in all its facilities nationwide commit to
undertaking activities in their respective locations to clean up the rivers and their tributaries and
contribute to the program's goal of planting 1.5 billion trees from 2011 to 2016.
Beyond this, we regularly lead coastal cleanups, tree and mangrove planting, localized Earth Hour
activities, environmental awareness programs and other nature-friendly initiatives in our depots across
the country.
C. Caring for the Community
1. Province of Bataan
We undertake strategic community programs to benefit thousands of residents in the province:
Sulong KaBataan
In partnership with the Diocese of Balanga City, we established Sulong KaBataan (which freely translates
to encouraging the province, and in particular its young people, to move forward).
Sulong KaBataan is a movement aimed at helping thousands of out-of-school youth of the province by
encouraging them to participate in programs to ensure their long-term development, specifically
through values formation, technical skills, and leadership training. Sulong KaBataan also creates a
platform for discussion among youth leaders and the business community to pave the way for greater
opportunities for employment and livelihood. Ultimately, these interventions are seen to help Bataeos
become better, more productive, and responsible citizens of Bataan.
Sulong KaBarangay
Sulong KaBarangay is the result of a public-private partnership among the local government of Limay,
DSWD, Petron Foundation, Petron Bataan Refinery, and PinoyME Foundation. The program maintains
five community sub-projects and one livelihood sub-project by resident volunteers of Barangays Alangan
and Lamao, who take part in the seminars and trainings to identify the different issues in their
communities that need to be addressed.
Community projects include:
Sulong Kalinisan seeks to reduce, and manage solid waste in both barangays
Sulong Karunungan aims to establish a training center in Brgy. Lamao through the assistance of the
Technical Education and Skills Development Authority (TESDA)
Sulong Katubigan aims to aid resident in Sitios Calula, Ogpoy, and Kalula in the construction of a
gravitational water system
Sulong Kalusugan, Sulong Kinabukasan a health initiative to address malnutrition and other diseases
in the community
Meanwhile, the parallel sub-project, Sulong Kabuhayan, helps address the livelihood concerns of the
residents.
2. Pandacan, Manila
Petron inaugurated the Petron Community Health Center within the compound of our Pandacan
Terminal. A joint effort with the Manila Health Department, and Ospital ng Maynila, the Community
Health Center augments the health care programs and services being delivered by nearby barangay
health centers by providing consultation and treatment, a clinical laboratory, X-Ray, and ultrasound
facilities.
We also established the Barangay Ecological Solid Waste Management Program for residents of
fenceline barangays in Pandacan, Manila.
D. Employee development
Volunteerism in action or VIA
Petron is able to exhibit the
kind of corporate leadership
where promises are fulfilled,
commitments are honored and
pronouncements are lived up to.
With VIA, the company has been
able to do so with programs that
engage the employees, the
earliest going back to 1988.
Quite fittingly, the acronym VIA
also best describes how the
volunteerism program appeals
to employees: VIA is a way,
apath or an opportunity by
which employees can get directly involved in doing good for society in whatever way they can. By
taking part in the various CSR programs, Petron employees are able to go beyond their professional
chores and be involved in making a difference in society, be it planting trees, distributing relief
goods, building houses, telling stories to grade school children, sharing time with street kids or
cleaning the coast. It is during these instances that the employees get a deeper sense of fulfillment
in what they do for others, and galvanizes their commitment to serve beyond their duties.
In 2011, Petron registered a milestone for employee volunteerism. In what is a first for the
companyand probably in the history of Philippine businessPetron achieved a 100% participation
among its workforce. Petron employees put in an equivalent of 16,120 hours to various efforts in
education, environment, and other community endeavors. Furthermore, they pledged at least an
hour of their salaries for the last working day of 2011 to raise funds for Tulong Aral ng Petron under
the "Share Your Spare" campaign.
Not just our employees, our stakeholders engage in our CSR projects. Also in 2011, they accounted
for 28,585 hours of volunteer work rendered to benefit 88,823 people.
VIA is a continuing employee engagement program that articulates Petron's corporate positioning of
leadership through partnerships. It has received citations from the International Association of
Business Communicators (IABC) and the Public Relations Society of the Philippines (PRSP).
