Petron’s profit vaulted 51% to P10.1 B in 2023

MANILA, Philippines  – A brisk rev-up in output and sales volumes fueled a 51-percent surge in the profit of Petron Corp., the country’s sole oil refiner, despite drawing a lower top line in 2023.

“Our strategy to capture the economic resurgence and minimize external pressures played a key role to our success,” said Ramon Ang, Petron president and CEO.

“While challenges remained, our company managed to deliver significant improvements in high-demand sectors,” Ang said in a statement.

In a stock exchange filing on Tuesday, Petron reported a net income of P10.1 billion in 2023, jumping from P6.7 billion in 2022.

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According to Petron, the upswing in the financial results came at a time of persistent geopolitical conflicts and global inflationary concerns pressuring the market.

Growth in jet fuel, LPG sales

Combined Philippine and overseas sales volume totaled 126.9 million barrels, rising by 13 percent from 112.8 million barrels.

Petron said this was driven by the significant growth in its jet fuel and liquefied petroleum gas (LPG) sales and higher production at the refineries in Bataan and at Port Dickson in Malaysia.

In the Philippines alone, Petron sold 79.5 million barrels last year, higher by 16 percent than 68.5 million barrels previously

The San Miguel subsidiary cornered about 80 percent of the domestic industrial market in 2023, thanks to a 50-percent growth in jet fuel sales.

Likewise, domestic LPG sales climbed by 26 percent year-on-year.

However, despite an increase in sales, Petron saw a 7-percent drop in revenues, which settled at P801 billion from P857.6 billion.

Price corrections

This was attributed to prices continuing to correct from their record-high levels in 2022.

The average price of the benchmark Dubai crude settled at $82 per barrel in 2023, down by 15 percent from $96 per barrel in the previous year.

Meanwhile, Petron’s operating income surged by 60 percent to P30.7 billion from P19.2 billion.

Petron supplies about 40 percent of the total fuel requirements nationwide through the refinery in Bataan.

The company said that for 2024, it “is poised to reinforce its growth and nation-building efforts including the expansion of its retail and logistics network, side by side with its sustainability endeavors.”