Volatility, Malaysia operations slump cut Petron profit in 2024

MANILA, Philippines – Local oil giant Petron Corp. led by billionaire Ramon Ang reported a 16-percent drop in profit last year due to market challenges, including oil price swings and the slump in its operations in Malaysia.

The company said on Tuesday that its net income reached P8.47 billion, down from a year ago’s P10.1 billion.

Operating income likewise dipped to P29.22 billion from P30.72 billion in 2023.

READ: Petron’s H1 earnings dipped by 2% on volatile forex, oil prices

Petron said its operations in Malaysia were weighed down by policy changes in fuel subsidies, coupled with a temporary shutdown of a refinery in the last stretch of the year, which impacted its production and exports.

It also noted that global oil prices continued to be volatile due to tensions in the Middle East as well as slower demand from economic powerhouse China. The firm noted that Dubai crude had averaged $80 per barrel last year, peaking at $89 in April before diving to $73 per barrel by year-end.

Ang, Petron president and chief executive officer, remained pleased with the group’s performance amid hurdles dragging growth.

“These results demonstrate our ability to adapt to market conditions while strengthening our leadership,” he said in a statement.

“With the continued support of our customers, employees, and partners, we remain focused on sustainable growth and contributing to our country’s economic progress,” Ang added.

Meanwhile, Petron’s revenues in the period saw an improvement of 8 percent, growing to P867.97 billion from the previous P801.03 billion.

Consolidated sales also rose by 10 percent to 139.85 million barrels, with its Philippines and Singapore operations driving the growth. Thanks to their network expansion and marketing efforts, Petron said both countries had recorded combined sales of 92.49 million, 16 percent higher than in 2023.

In a separate disclosure on Tuesday, Petron said its board of directors approved the plan to issue up to P25 billion retail bonds, with an oversubscription of up to P7 billion.

Citing data from the Department of Energy, Petron said it was the top oil company in the local market with a market share of 24.9 percent in the first semester last year, up from 23.1 percent in 2023. INQ