Petron Corp. reports strong sales volume amid market challenges
In the first half of 2023, Petron Corporation, an industry leader in the oil and gas sector in the Philippines, demonstrated its resilience and adaptability. Despite market challenges, the company’s consolidated sales volume reached 57.61 million barrels, marking a 12% increase from the same period last year. This growth was particularly noticeable in the Philippines, where Petron’s sales volume jumped 16% to 34.93 million barrels, driven by a strong recovery in demand.
Various business segments recorded consistent increases, indicating a steady transition in the post-pandemic era. Petron’s combined sales volume from its Commercial business increased by 13% in the first half of the year, while total retail sales from the Philippines and Malaysia improved by 8% year-on-year.
However, the oil price correction that began in the second semester of last year persisted in the first half of 2023. The benchmark Dubai crude price hovered around USD80 per barrel during this period, declining by 22% compared to last year’s average. Consequently, despite the increase in sales volume, Petron’s consolidated revenues decreased by 8% to PHP367.04 billion (USD6.6 billion).
Despite these challenges, Petron sustained its consolidated operating income at PHP16 billion (USD290 million) for the first semester of this year, buoyed by encouraging volume growth and overall performance on the marketing front. With rising financing costs due to successive interest rate hikes, consolidated net income ended at PHP6.14 billion (USD111.3 million) for the first six months of 2023.
Petron is not only focused on maintaining financial resilience but also on future growth and sustainability. The company is constructing its own coco-methyl ester plant to generate better margins for diesel fuel and increase the utilisation of a clean alternative fuel blend. Additionally, Petron plans to roll out its first batch of e-vehicle charging stations in key locations in the second half of 2023. The company remains committed to intensifying ESG (Environmental, Social and Governance) programs aimed at reducing carbon emissions, waste management, and energy conservation.
