Petron earnings rise 16 percent in 3 quarters

MANILA, Philippines — Volume improvements across major business segments fueled a strong profitability for oil giant Petron Corp. in the nine months ending September.

Petron reported a net income of P9.5 billion from January to September, 16 percent higher than the P8.2 billion recorded in the same period last year.

“We are seeing consistent growth in all areas of our business. Our wide reach, superior product quality, and reliable service have allowed us to sustain our good performance throughout the year, and maintain or even strengthen our market share in high-demand sectors,” Petron president and CEO Ramon Ang said.

Petron sustained its volume growth in the nine-month period, with sales volume rising by 16 percent year-on-year to 93.6 million barrels.

Sales volumes for retail from the Philippines and Malaysia posted an eight percent improvement, driven by higher demand for Petron’s gasoline and diesel products.

The company’s commercial volumes also jumped by 12 percent with new sales agreements and renewed ties with major airlines and flag carriers during the period.

In the Philippines alone, the country’s largest oil company saw its sales volume expand by 20 percent to 42.7 million barrels from last year’s 35.5 million barrels.

However, the company’s topline for the nine-month period declined to P587.3 billion from P631.1 billion in 2022 as prices corrected from their extraordinarily elevated levels last year due to the Russia-Ukraine conflict.

While international prices started to rise again in the third quarter, Petron said the year-to-date September average of benchmark Dubai crude closed at almost $82 per barrel, down 18 percent from the same period last year.

Despite recording lower revenues, Petron’s operating income rose by 64 percent to P27 billion, driven largely by the strong volume growth.

The improvement allowed the company to absorb the more than 50 percent rise in financing cost.

“For nine decades, we have been more than just a brand. We have been a companion on countless journeys, big and small. From powering industries to supporting the daily needs of our kababayan, Petron has always been there. We have stood strong as the industry leader, creating opportunities for success defined by our value of malasakit,” Ang said.