Petron net income doubles in H1

Petron Corp.’s net income in the first half doubled to P7.7 billion from P3.87 billion in the same period last year, driven by a double-digit sales growth as demand continues to pick up.

The company’s Philippine and Malaysian operations, including its trading subsidiary in Singapore, sold a total of 51.4 million barrels during the period, up 34 percent from 2021’s 38.5 million barrels. Sales volume improved across all trades with Petron’s commercial sales posting the highest increase as more industries, including aviation travel, rebounded from the pandemic’s impact.

Its retail business improved by nearly 30 percent, fueled by the strong sales of its premium gasoline and diesel fuels.  Sale of lubricant products, Jet-A1, LPG, and petrochemicals likewise showed strong growth compared to the previous year.

Consolidated revenues stood at P398.52 billion, surpassing last year’s P174.13 billion, driven by the sustained increase in sales volume and prices. Dubai crude averaged $102 per barrel from January to June as supply concerns persisted due to geopolitical conflicts.

Petron said it also benefited from the strong regional refining margins with higher production at the refinery. These gains were partly offset by lower marketing margins as a result of escalating price competition in the market. In addition, the company incurred higher financing costs due to increased working capital requirements.

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

Petron intensified its water conservation efforts through different programs and mechanisms already in place in the company. Some 23 Petron terminals comprised the top 48 facilities in San Miguel Corp.’s (SMC) Water for All Project, a group-wide undertaking, which aims to cut SMC’s water use by 50 percent by 2025. From 2016 to 2021, Petron’s total accumulated water savings reached 15.29 million cubic meters.

Since 2000, Petron employees and its fenceline communities have planted over one million trees and mangroves. In addition, Petron also adopted over 30 hectares of mangrove areas in Visayas. For 2022, the company is looking to expand its adopted reforestation sites in Bawing, General Santos City and in Tagoloan, Cagayan de Oro as part of its sustained environmental, social and governance initiatives.

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