Leading oil firm Petron Corporation reported that its consolidated net income in the first quarter this year slightly dropped to P3.4 billion versus last year’s more upbeat bottom line of P3.6 billion due to higher financing cost.

“The increase in financing cost was partly tempered by the mark-to-market valuation of commodity hedges, closing the period with a net income of P3.4 billion, slightly behind last year’s P3.6 billion,” the company stressed.

Despite the minimal skid in profitability, Petron President Ramon S. Ang sounded off that “it’s still a promising start to the new year.”

He added “the consistent rise in fuel demand and better industry conditions, combined with our efficiency and volume-generating measures contributed to our results in the first quarter.”

On the demand side, the company logged upturn with the post-pandemic recovery momentum that it has been wading through on its business operations both in the Philippines and its offshore market in Malaysia.

That then prompted revenues to climb by 10-percent to P188.8 billion in the initial three-month stretch this year; from the leaner P172.3 billion on a comparative January-March period in 2022.

Additionally, the oil firm noted that “despite the 16-percent dip in crude prices for the first three months of this year, Petron reported an operating income of P8.4 billion,” and that was within the level of what it also accomplished last year;  “due to higher sales volume and strong regional refining margins.”

Petron emphasized that it  “captured the growth in fuel demand and sold consolidated volumes of 28.6 million barrels in the first three months, up 11-percent from 2022’s 25.7 million barrels.”

In particular, the sales of Petron to commercial  customers jumped 13-percent; and that was mainly attributed to the demand growth of the aviation sector – owing to the ‘revenge travels’ of many consumers following the relaxation of the pandemic restrictions.

On the retail side, the oil firm specified that the combined volume sales growth hovered at 12-percent; and that was traced to increasing mobility across customer-segments.

Onward, Ang asserted that “despite external challenges, we remain confident in our ability to navigate the highs and lows of this industry as we work on achieving a full financial recovery this year.”

Among the forthcoming business growth and income-driving opportunities being latched onto by the company are the construction of its own coco-methyl ester (CME) plant in the Petron refinery complex in Bataan; as well as the continuing expansion of its service stations.

The company indicated that it is also taking great strides on its efficiency and sustainability initiatives – including its environmental projects that will then aid in the global effort to abate climate change risks.