Petron doubles earnings to P7.7B in H1

PETRON Corp. posted a consolidated net income of P7.7 billion in the first six months of 2022, double last year’s P3.87 billion as the country’s largest oil company and only operating oil refinery continued to emerge stronger from the pandemic.

In a disclosure to the Philippines Stock Exchange on Monday, Petron declared sales volumes consistently increased amid recovering demand and waning pandemic concerns with its first semester sales showing double-digit growth from last year.

During the first half of the year, Petron’s Philippine and Malaysian operations, including its trading subsidiary in Singapore, sold a total of 51.4 million barrels, a 34-percent increase from 38.5 million barrels recorded in the same period in 2021. Sales volume improved across all niches, with Petron’s commercial sales posting the highest increase as more industries, including aviation travel, rebounded from the pandemic’s impact.

Petron’s total retail business improved 30 percent, mainly due to strong sales of its premium gasoline and diesel fuels. The sales of lubricant products, Jet-A1, liquefied petroleum gas and petrochemicals also showed strong growth year on year.

The company’s consolidated revenues amounted to P398.52 billion, compared to last year’s P174.13 billion, driven by the sustained increase in sales volume and prices. During the six-month period, Dubai crude averaged $102 per barrel as supply concerns persisted due to geopolitical conflicts.

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Petron also benefited from strong regional refining margins with higher production volume at the refinery level. These gains, the company noted, were partly offset by lower marketing margins as a result of escalating price competition in the market. It also incurred higher financing costs due to increased working capital requirements.

“Our post-pandemic transition has so far been marked by steady growth, particularly in segments where we suffered major setbacks earlier during this crisis. We move forward with hope and optimism as we roll out projects that will not only yield optimal returns for the company but more importantly, lead toward greater sustainability and create economic opportunities for more sectors,” Petron President and Chief Executive Officer Ramon Ang said.