Petron reels from weaker oil prices, Mid-East conflict
Lingering market pressures dampened Petron Corp.’s first-half earnings, which declined by 12 percent to P5.3 billion.
In a statement, the oil refiner backed by tycoon Ramon S. Ang said its revenues had also dropped by 13 percent to P386.4 billion in the January to June period, compared with the P444.5 billion generated last year.
Sales volume inched up by 3 percent to 56.2 million barrels.
The higher combined sales volume from the Philippines and Malaysia, however, failed to lift the group’s top line amid cheaper global oil prices.
Petron’s weaker performance in the first semester was blamed on the rising geopolitical tensions in the Middle East as well as the tariff war triggered by the United States.
It also cited the recent decision of the Organization of the Petroleum Exporting Countries Plus to boost oil production, resulting in lower crude prices.
According to Petron, Dubai crude prices hit as low as $64 per barrel in May before returning to $69 level in June. Because of this, the average Dubai crude prices stood at $72 per barrel in the first six months, down 14 percent from $83 per barrel.
Ang, Petron president and CEO, still expressed optimism about the group’s capacity to bounce back.
“Our results continue to reflect our resilience in overcoming market challenges, while highlighting the strength of the Petron brand across different customers and industries,” Ang said.
“We remain confident in our ability to drive growth as we further enhance our operations towards greater efficiency and sustainability,” he said.
Last month, Petron said it had completed its sale of retail bonds worth P32 billion. Proceeds from the issuance would be tapped to settle existing debt and short-term loans.
In 2021, the firm also raised about P18 billion from the first tranche of its P50-billion bond shelf registration.
