Leading oil firm Petron Corp. of billionaire Ramon S. Ang suffered a 25-percent drop in its bottom line in the first nine months due to crude market turbulence that gnawed on operating margins.
The company reported on Tuesday that its net income in the January to September period had reached P7.1 billion, down from P9.5 billion a year ago.
Petron’s operating income likewise plunged to P22.3 billion from P27 billion.
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“The strong performance of the company’s marketing segment was weighed down by the correction in refining margins … [R]egional refining cracks tracked the continued correction in crude prices to pre-war levels affecting the margins of Petron,” it said in a statement.
According to the group, the global oil market continued to show uncertainties due to weak demand from economic powerhouse China, which worsens the impact from the ongoing war in the Middle East.
It said the price of benchmark Dubai crude had continued to fall in the third quarter, settling at $74 per barrel, down to 17 percent from its $89 per barrel peak in April this year. Despite the current “challenging business environment,” Ang remained optimistic about the firm’s growth prospects.