PETRON Corp. reported on Tuesday a 16-percent increase in net income for the first half of the year brought about by higher revenues.
The country’s leading oil company sustained its strong performance from January to June this year, posting P9.5 billion in net income at end-June from P8.2 billion in the same period last year.
Revenues increased 32 percent to P273.5 billion over the period, from 2017’s P207 billion, driven by sustained sales volumes of its Philippine and Malaysian operations and higher prices of crude oil and finished products.
Consolidated sales volumes grew to 54.4 million barrels. Benchmark Dubai crude oil averaged $68 per barrel in the first six months of 2018, 32 percent higher over the same period last year.
In the Philippine market, Petron’s continued focus on other high-margin products resulted in petrochemicals generating strong sales, surpassing last year’s first-half volumes by 14 percent. Gasoline and aviation fuel, likewise, increased by 8 percent and 4 percent, respectively.
Petron Malaysia, in turn, reported a 7-percent growth in sales volumes boosted by stronger retail sales. Petron Malaysia now has over 620 service stations and is becoming a significant force in this highly competitive market. Petron also benefited as the Malaysian ringgit recovered and continued to strengthen during the period.
Operating income for the first six months of 2018 stood at P15.6 billion, higher than last year’s P14.6 billion by 7 percent. This did not reflect the 32-percent robust growth in revenues because the increase in the cost of crude outpaced the increase in prices of finished goods. This reduced the company’s gross profit rate to 8.5 percent in the first half of 2018 versus last year’s 10.2 percent over the same period.
“We intend to fortify our leadership position as we ride on the continued economic growth of the Philippine and Malaysian markets. We continue to integrate our value chain, build up our supply and logistics capabilities, and roll out more service stations than our competitors,” Petron President and CEO Ramon S. Ang said.
Image credits: Alysa Salen