MANILA – Petron Corp. saw a 20-percent drop in its consolidated net income in the first half of the year to P6.14 billion from P7.7 billion due to interest rate hikes and rising costs, along with a decline in global crude prices.
According to Petron, the benchmark Dubai crude price dropped by 22 percent to $80 per barrel on average, and thus failed to raise the company’s earnings from January to June.
This also triggered an 8-percent dip in Petron’s consolidated revenues to P367.04 billion from last year’s P398.52 billion.
Despite this, Petron president and chief executive officer Ramon Ang remained optimistic that the company would be able to maintain its “financial resilience” amid changing market conditions.
“Our growth strategy is on course as we continue to work on vital programs at our refinery, terminals and service stations that will ensure our stability, productivity and sustainability as an oil company,” Ang said in a statement on Tuesday.
Petron’s consolidated sales volume rose to 57.61 million barrels, a 12-percent growth from 51.41 million barrels sold in 2022.
For its Philippine operations, sales volume climbed by 16 percent to 34.93 million barrels on the back of strong demand recovery.
Petron noted that “consistent increases” were recorded across its business segments, with combined sales volume from its commercial business also rising by 13 percent in the first six months of 2023.
The company is currently working on the construction of its own coco-methyl ester plant, which is expected to allow Petron to generate “better margins” for diesel and ramp up its utilization of a clean alternative fuel blend.
Petron also said it planned to rollout the first batch of its electric vehicle charging stations at key locations in the second semester.
READ: Petron earnings falter on higher financing cost