Petron doubles 1st half income

Petron Corp. doubled its net income in the first half on the back of higher sales volumes.

The country’s largest oil company and only remaining refiner said its consolidated net income went up to P7.71 billion in the first semester from last year’s P3.87 billion.

Consolidated revenues reached P398.52 billion, 129 percent higher than last year’s P174.13 billion, driven by the sustained increase in sales volume and prices.

Petron said its Philippine and Malaysian operations, including its trading subsidiary in Singapore, sold a total of 51.4 million barrels during the six-month period, up 34 percent from 2021’s 38.5 million barrels.

Petron’s sales volumes have been consistently increasing amid recovering demand and waning pandemic concerns.

The company said sales volume improved across all trades with commercial sales posting the highest increase as more industries, including aviation travel, rebounded from the pandemic’s impact.

The total retail business of the group posted a nearly 30-percent uptick, fueled by the strong sales of its premium gasoline and diesel fuels.

Sale of lubricant products, Jet-A1, liquefied petroleum gas, and petrochemicals likewise showed strong growth compared to the previous year, the company said.

Petron said it benefited from the strong regional refining margins with higher production at the refinery.

The gains were partly offset by lower marketing margins as a result of escalating price competition in the market.

The company also incurred higher financing costs due to increased working capital requirements.

Petron said Dubai crude averaged $102 per barrel from January to June as supply concerns persisted due to geopolitical conflicts.

“Our post-pandemic transition has so far been marked by steady growth, particularly in segments where we suffered major setbacks earlier during this crisis,” Petron president and CEO Ramon Ang said.

“We move forward with hope and optimism as we roll out projects that will not only yield optimal returns for the company, but more importantly, lead towards greater sustainability and create economic opportunities for more sectors,” Ang said.

Petron plans to construct and operate a coco-methyl ester plant.

The company’s board of directors, during a regular board meeting yesterday, approved the amendment of the company’s primary purpose under its articles of incorporation to include biofuels.

“The proposed amendment will allow the company to construct and operate a coco-methyl ester plant and secure relevant permits therefor,” Petron said.