Petron posts P3.87 billion income in H1

MANILA, Philippines — Petron Corp. continued its positive performance in the first half, registering a net income of P3.87 billion.

This is a reversal of the P14.24 billion net loss it incurred in the same period last year due to the pandemic.

Consolidated revenues of the company’s Philippine and Malaysian operations grew 14 percent to P174.13 billion from P152.36 billion.

Petron attributed the revenue growth to the continued recovery of oil prices with Dubai crude averaging $72 per barrel in June, up 44 percent from December 2020.

“The bullish market was driven by the conservative stance of major oil producers in supply management, boosted by optimistic market sentiments with the global vaccination rollouts and gradual reopening of economies,”Petron said.

Petron reported a seven percent decline in overall sales volume as the market continues to reel from the impact of the pandemic.

The company, however, said the slowdown in sales to industrial accounts was partially offset by the gradual improvement in the retail segment.

Local sales in the service stations climbed by 12 percent while volumes for lubes significantly improved by nearly 50 percent.

Operating income amounted to P8.95 billion compared to a loss of P14.54 billion a year ago.

“Though we continue to face some challenges, we have seen tremendous progress this year. The increase in demand and continued improvement in international prices indicate that we are slowly but surely regaining lost ground as an industry,” Petron president and CEO Ramon Ang said.

“Our financial performance in Petron, due in no small part to our recovery efforts and prudent use of resources, is proving to be a complete turnaround from last year which we hope to sustain as we continue to move past the pandemic slump,” Ang said.

While regional refining margins remained suppressed, Petron, the only oil refining company in the country, resumed operations at its refinery in Bataan in June as crude prices steadily recovered.

The refinery was earlier closed in May 2020 and reopened in October. It was shut down again in February this year.

“Prices of petrochemical have likewise registered significant improvement on the back of higher demand.”