Petron’s H1 earnings dipped by 2% on volatile forex, oil prices
Leading local oil firm Petron Corp. recorded a net income of P6 billion in the first half, 2 percent lower than the level a year ago, due to the volatility of oil prices and foreign exchange rate.
Petron has yet to respond when asked about the reason behind the slight decline.
In a message to Inquirer, Philstocks Financial research and engagement officer Mikhail Plopenio said the slight decline in Petron’s first-half earnings could be blamed on the volatility of oil prices and the local currency against the US dollar.
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Global oil prices continue to be volatile due to the escalating tensions in the Middle East. Petron reported that the benchmark Dubai crude price had averaged $83 per barrel in the first semester, up 5 percent from a year ago.
Meanwhile, the Philippine peso has been trading within the P56 to 58 range against the greenback this year.
Article continues after this advertisement“However, Petron said that the company had a solid volume growth and improved margins,” Plopenio said.
Article continues after this advertisementPetron president and chief executive Ramon S. Ang noted in a separate filing that the company’s “prudent and strategic approach continues to pay off amid challenging economic conditions.”
“Moreover, we were able to retain our edge in vital sectors and enjoy the trust of more and more customers. Our focus remains on strengthening the quality of our products and services while creating excellent value for our stakeholders,” the billionaire said.
Petron’s six-month consolidated operating income climbed 8 percent to P17.3 billion. Consolidated revenues in the first semester also jumped 21 percent to P444.5 billion.
Philippine and Malaysian operations posted strong volumes, mainly driven by the retail segment. Industrial sales also booked a 9-percent increase on higher jet fuel and liquefied petroleum gas demand.
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Sales volume reached 69.1 million barrels in the January to June period, 20 percent higher than the volume sold in the same period last year.
Philippine sales volume increased by 27 percent to 44.4 million barrels. Malaysia, meanwhile, booked a 9-percent jump to 24.7 million barrels.
Petron supplies about 40 percent of the total fuel requirements nationwide through the refinery in Bataan.
It ended the first half with a service station network of around 2,600 outlets in the two markets. INQ
