Petron income down by 20 percent in H1

MANILA, Philippines — Earnings of oil giant Petron Corp. were cut by a fifth in the first half as revenues declined due to sustained oil price correction during the review period.

Petron reported a net income of P6.14 billion in the first semester, 20-percent lower than the P7.7 billion posted in the same period last year.

The company saw consolidated sales volume climb by 12 percent to 57.61 million barrels from 51.41 million barrels in the first half of 2022.

Petron’s sales volume for its Philippine operations, in particular, rose by 16 percent to 34.93 million barrels on the back of the country’s strong demand recovery.

The company likewise recorded consistent increases across its various business segments, signifying its steady post-pandemic transition.

Combined sales volume from its commercial business jumped by 13 percent in the first half, while total retail sales from the Philippines and Malaysia improved by eight percent year-on-year.

However, despite the increase in sales volume, Petron’s consolidated revenues dipped by eight to P367.04 billion from last year’s P398.52 billion.

This was because the oil price correction, which began in the second semester of 2022 following the record-high price surge in the second quarter due to the war in Ukraine, persisted in the first half of 2023.

Petron said the benchmark Dubai crude hovered around the $80-per-barrel mark from January to June, 22 percent lower than last year’s first semester average.

The company said the significant correction in commodity prices likewise resulted in the contraction of refining cracks.

Nonetheless, Petron president and CEO Ramon Ang said the company’s first half results demonstrate its “proven ability to secure our cash flow and maintain our financial resilience amid changing market conditions.”

“Our growth strategy is on course as we continue to work on vital programs at our refinery, terminals, and service stations that will ensure our stability, productivity, and sustainability as on oil company,” he said.

Petron is constructing its own coco-methyl ester plant, which will allow the company to generate better margins for diesel and ramp up its utilization of a clean alternative fuel blend.

The company is also gearing up for the rollout of its first batch of e-vehicle charging stations at key locations in the second half of the year.