Petron earnings falter on higher financing cost
MANILA -Tycoon Ramon Ang-led Petron Corp. logged a slight dip in earnings in the first quarter despite strong sales volume and fuel demand, the oil company said on Wednesday.
Petron’s net income from January to March declined to P3.4 billion from P3.6 billion in the same period last year due to higher financing costs.
This was tempered by growth in fuel demand, as the company saw an 11-percent increase in consolidated sales volume to 28.6 million barrels, up from 25.7 million barrels last year.
“It’s still a promising start to the new year. The consistent rise in fuel demand and better industry conditions, combined with our efficiency and volume-generating measures contributed to our results in the first quarter,” said Ang, president and CEO of Petron.
Higher demand from the aviation sector likewise pulled up commercial sales by 13 percent. Combined retail sales from the Philippines and Malaysia rose by 12 percent due to increased mobility, according to Petron.
The company also saw better recovery momentum in consolidated revenues, which grew 10 percent to P188.8 billion.
According to Petron, it is set on intensifying sustainability programs “with a number of big projects” in the pipeline, including the construction of its own coco-methyl ester plant at the Petron Bataan Refinery Complex.
“As the industry leader, lessening our resource utilization and impacts on the environment are fully integrated into our operations,” Ang said.