Petron Corporation sustained its financial strength and resilience in the first half of the year, posting a net income of P5.3 billion despite a challenging global market. The company’s robust performance was driven by strategic marketing initiatives and strong domestic demand, which helped offset the impact of volatile oil prices and geopolitical tensions.
Global oil prices experienced significant fluctuations during the period. Geopolitical tensions and the unwinding of production cuts by OPEC+ members caused Dubai crude to drop to as low as $64 per barrel in May before recovering to $69 in June. This resulted in an average price of $72 per barrel for the first half of the year, a 14% decrease from the $83 per barrel average during the same period last year.
Despite these headwinds, Petron’s Philippine operations saw a notable 13% increase in retail volumes, demonstrating strong demand and effective marketing strategies. This growth, combined with optimized plant operations and increased production at the company’s refineries in Bataan, Philippines, and Port Dickson, Malaysia, helped cushion the financial impact of lower international prices and weak refining cracks.
Combined sales volume from the Philippines and Malaysia rose by 3% to 56.2 million barrels from 54.7 million barrels in the previous year. However, total consolidated revenues for the first six months reached P386.4 billion, a 13% decrease from last year, primarily due to lower international oil prices and reduced volumes from the company’s Singapore trading operations. Consolidated sales volume, including Singapore trading, was 64.2 million barrels, down 7% from 69.1 million barrels in the previous year.
Petron President and CEO Ramon S. Ang commented on the results, “Our performance continues to reflect our resilience in overcoming market challenges and highlights the strength of the Petron brand across various customers and industries. We remain confident in our ability to drive growth as we further enhance our operations for greater efficiency and sustainability.”
In a testament to strong investor confidence, Petron successfully raised P32 billion through a fixed-rate bonds offering. The offering was 1.3 times oversubscribed, confirming robust support from the investment community. The proceeds will be used to redeem existing bonds and for general corporate purposes.
