Petron earnings turn rosy as fuel prices skyrocket

MANILA, Philippines — Petron Corp.’s bottom-line ballooned in the first nine months, benefitting from expensive fuel prices and resurgent consumer demand as a result of the Philippine economic reopening.

In a disclosure sent to the Philippine Stock Exchange on Tuesday, the oil giant reported its net income leapfrogged 64% year-on-year to P8.2 billion in the first nine months. This was nearly double what Petron raked in the same period in 2021, as the domestic economy eased restrictions then. 

Revenues skyrocketed 116% year-on-year to P631.1 billion from January to September, financial results showed.

“Despite uncertainties from geopolitical conflicts affecting the industry, we are pleased to note that our recovery is still on track,” Ramon Ang, company president and chief executive, said.

The oil giant noted that easing restrictions, which enabled demand to resurface in most economies, supported their earnings haul. Operating income rose 23% on-year to P16.5 billion from January to September. 

At the same time, Petron disclosed financing costs grew as a result of the peso’s depreciation and the Bangko Sentral ng Pilipinas’ aggressive interest rate hikes. 

Companies, such as Petron, benefit from the Philippines’ oil importing operations since it has no oil fields of its own. As such, consumers and businesses are exposed to fluctuations in global oil prices. 

The total sales volume from Petron’s domestic and Malaysian operations and its Singapore trading subsidiary surged 37% to 80.4 million barrels in the first nine months. The company noted that Philippine sales volume alone advanced by nearly 30%. 

Shares in Petron lost 1.24% to close at P2.38 apiece on Tuesday.