Petron 9-mo bottom line down 44% to P5.4 billion

Petron Corp. saw its earnings take a hit from the monthslong conflict in the Middle East, with its net income in the January to September period dropping by 44 percent.

The group reported on Tuesday that its profit reached P5.4 billion in the first nine months, down sharply from P9.7 billion in the same period last year.

Revenues, meanwhile, increased by 56 percent to P928.2 billion on higher oil prices and an improvement in sales volume.

The firm’s consolidated sales volume, including from its Singapore-based regional trading arm, rose by 3 percent to 103.5 million barrels, driven by robust retail sales in the Philippines and Malaysia.

As the product jetty of the Port Dickson Refinery in Malaysia remained offline, Petron continued to see operational constraints, leading to a 3-percent dip in overall sales volume.

Petron is optimistic of regaining momentum with a replacement on course for completion by early 2027.

However, its margins remained squeezed due to high crude costs, import premiums and freight as the situation in the oil-producing region dragged on for about nine months now.

Supply constraints

Aside from uncertainties surrounding a potential peace deal in the Middle East, the bombing attacks have destroyed key energy infrastructure as well as disrupted trade flows in crucial maritime routes.

According to Petron, the situation had led to the benchmark Dubai crude surging anew from an average of $77 per barrel in July to $114 in September.

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This pushed the average price covering January to September to $92 per barrel, 29 percent higher year-on-year.

Petron chair and CEO Ramon Ang maintained his bullishness about “keeping our business viable and competitive.”

“Despite external pressures, our commitment to help ensure fuel security, meet the needs of our customers and fulfill our responsibility as the nation’s energy backbone remains strong and unwavering,” Ang said.

Petron holds 30 percent of the market share in the local fuel supply. It is the country’s only oil refiner.