Petron Corp. posted a net income of P5.4 billion at end-September, down 44 percent year-on-year due to rising crude costs and geopolitical and economic headwinds caused by the war in the Middle East.
Revenues rose 56 percent to P928.2 billion, driven by higher oil prices and increased sales volume. However, margins remained under pressure from rising crude costs, import premiums, and freight amid escalating tensions in the Middle East.
This was further compounded by the reduction in refining margins in Malaysia, reflecting refinery operational constraints resulting from the continued unavailability of the Port Dickson’s product jetty. As a result, Petron’s operating income declined 28 percent year-on-year to P19.1 billion.
Dubai crude rebounded sharply from an average of $77 per barrel in July to $114 in September, bringing its average price from January to September this year to $92 per barrel, up 29 percent year-on-year.
Consolidated sales volume stood at 103.5 million barrels, up 3 percent, supported by a 33-percent increase from its Singapore trading arm. The combined sales volume in the Philippines and Malaysia declined 3 percent to 82 million barrels, attributable to reduced refinery production.
‘Our diversified portfolio, financial discipline, and robust risk management equip us with the resilience needed to navigate these challenging times, while still keeping our business viable and competitive.
Despite external pressures, our commitment to help ensure fuel security, meet the needs of our customers, and fulfill our responsibility as the nation’s energy backbone remains strong and unwavering,’ Petron Chairman and CEO Ramon S. Ang said in a statement.
The company said it remains focused on driving sustainable growth through its strategic retail expansion, aggressive customer acquisition, and the continued optimization of its refining, storage, and distribution facilities.
Petron recently opened its fourth Treats convenience store at the Ninoy Aquino International Airport in line with the consistent expansion of its non-fuel business. Across the company, these growth efforts are met with equally deliberate initiatives to increase operational efficiency, reinforce sustainability, and mitigate business risks amid a particularly precarious industry environment.