Petron’s net income declines 5.6% to P3.4B on rising costs

PETRON Corp. registered a net income of P3.4 billion in the first quarter, down by 5.6% from P3.6 billion last year, due to the oil company’s higher expenses.

In a stock exchange disclosure, Petron recorded consolidated revenues of P188.8 billion, 9.6% higher than the P172.3 billion registered a year earlier, because of sustained fuel demand.

“It’s still a promising start to the new year,” Petron President and Chief Executive Officer Ramon S. Ang said in a statement on Wednesday.

For the January-to-March period, the company’s fuel demand and sold volumes were recorded at 28.6 million barrels, 11.3% higher than the 25.7 million barrels in the same period last year.

Commercial sales went up by 13% due to higher demand from the aviation sector, which pushed jet fuel sales to nearly double from last year.

Petron’s combined retail sales from the Philippines and Malaysia jumped by 12% on increased mobility.

“The consistent rise in fuel demand and better industry conditions, combined with our efficiency and volume-generating measures contributed to our results in the first quarter. Despite external challenges, we remain confident in our ability to navigate the highs and lows of this industry as we work on achieving a full financial recovery this year,” Mr. Ang said.

The company said that despite the 16% decrease in crude prices for the first quarter, it managed to report an operating income of P8.4 billion, fueled by higher sales volume and strong regional refining margins.

Petron said that the increase in financing cost was partly tempered by the mark-to-market valuation of its commodity hedges.

Meanwhile, the company is strengthening its sustainability programs through several projects in the pipeline, including the construction of its coco-methyl ester (CME) plant in its Petron Bataan Refinery Complex.

It is also working on intensifying its efficiency and sustainability programs to reduce its environmental footprint.

“We’ve never been more proactive in our sustainability commitment. As the industry leader, lessening our resource utilization and impacts on the environment are fully integrated into our operations. And these projects not only contribute to this end, but they also make us a more resilient, sustainable, and socially responsible oil company,” Mr. Ang said.

At the local bourse on Wednesday, shares in the company fell by two centavos or 0.59% to end at P3.35 apiece. — Ashley Erika O. Jose