PETRON Corp.’s first-half net income fell to P6.14 billion from P7.7 billion a year ago as rising financing costs due to successive interest rate hikes dragged on earnings.
In a filing to the stock exchange, Petron said that consolidated sales grew by 12 percent or 57.61 million barrels from 51.41 million in the same period last year.
On the other hand, consolidated revenues fell to P367.04 billion from last year’s P398.52 billion.
For its Philippine operations, Petron said that sales rose by 16 percent to 34.93 million barrels on the back of a strong demand recovery.
Combined sales volume from its commercial business increased 13 percent year on year while total retail sales from the Philippines and Malaysia improved 8 percent versus last year.
“The oil price correction, which began in the second semester of 2022, persisted in the first half of 2023,” Petron said in explaining the decline in consolidated revenues despite the increase in consolidated sales.
“The benchmark Dubai crude hovered around the $80-per-barrel mark during the said period, declining by 22 percent from 2021’s first semester average,” it added.
“The significant correction in commodity prices also resulted in the contraction of refining cracks for the company as well.”
Nevertheless, Petron said that it “sustained… consolidated operating income at P16 billion, buoyed by volume growth and performance of the company on the marketing front.”
Company President and Chief Executive Officer Ramon Ang said “these results demonstrate our 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 an oil company,” he added.
Petron’s share price fell by 6 centavos to P3.64 on Tuesday amid a 0.04-percent uptick for the benchmark Philippine Stock Exchange index.