Petron doubles net income to P7.7B in H1

Published August 1, 2022, 3:14 PM

by Myrna M. Velasco

Leading oil firm Petron Corporation has doubled its consolidated net income from both Philippine and Malaysian operations to P7.7 billion in the first half of this year from a leaner P3.87 billion in the same period last year.

The oil firm specified that it logged consistent rise in its sales “amid recovering demand and waning pandemic concerns with its first semester sales showing double-digit growth from last year.”

In terms of consolidated revenues, there was also a massive leap to P398.52 billion from a relatively trifling P174.13 billion last year – and that was mainly traced to the radical spike in international oil prices; with Dubai crude hitting average $102 per barrel from January to June this year, on account of persistent supply concerns as well as geopolitical events that have been affecting supply-demand fundamentals in global oil markets.

According to Petron President and CEO Ramon S. Ang, “our post-pandemic transition has so far been marked by steady growth particularly in segments where we suffered major setbacks earlier during (the) crisis.”

He thus qualified that Petron is now moving forward “with hope and optimism as we roll out projects that will not only yield optimal returns for the company but more importantly, lead towards greater sustainability and create economic opportunities for more sectors.”

In particular, the oil firm’s offshore operations in Malaysia – with the inclusion of its trading subsidiary in Singapore – posted sales of 51.4 million barrels within the January-June stretch this 2022.

Petron underscored that the registered sales volume had escalated by 34-percent from last year, which just hovered then at 38.5 million barrels on a comparative six-month period.

“Sales volume improved across all trades with Petron’s commercial sales posting the highest increase as more industries, including aviation travel, rebounded from the pandemic’s impact,” the oil company stressed.

Petron similarly emphasized that its retail business in totality “managed an uptick of nearly 30-percent fueled by the strong sales of premium gasoline and diesel fuels.”

It further conveyed that “sale of lubricant products, Jet-A1, liquefied petroleum gas and petrochemicals showed strong growth compared to the previous year.”

The oil firm explained that “as prices of finished products further surged in the second quarter, refining cracks also strengthened,” hence, such industry track enabled Petron to benefit “from the strong regional refining margins with higher production at the refinery.”

The company, nevertheless, indicated that “these gains were partly offset by lower marketing margins as a result of escalating price competition in the market,” as well as higher financing costs that were incurred due to increased working capital requirements. ###