Petron earnings up 16% to P9.5 billion

MANILA, Philippines — Petron Corp., the country’s largest oil company, reported a 16 percent jump in net earnings in the first semester to P9.5 billion on the back of strong sales volume.

Consolidated revenues rose 32 percent to P273.5 billion driven by sustained sales volumes of its Philippine and Malaysian operations and higher prices of crude oil and finished products, it said.

Petron said consolidated sales volumes grew from 52.9 million barrels to 54.4 million barrels.

Meanwhile, the average benchmark Dubai crude oil increased by 32 percent to $68 per barrel.

At home, Petron continued to focus on other high-margin products which allowed it to generate strong sales, surpassing last year’s first half volumes by 14 percent.

Gasoline and aviation fuel likewise increased by eight  percent and four percent, respectively.

The oil firm has a network of over 2,400 stations – the largest in the country and more than its three next competitors combined.

For its Malaysian operations, Petron reported a seven percent growth in sales volumes boosted by stronger retail sales.

The company attributed the volume growth to its continuing network expansion program. It now has over 620 stations.

Petron also benefitted as the Malaysian ringgit recovered and continued to strengthen during the period.

Operating income stood at P15.6 billion, seven percent higher than the previous year.

While the company registered a 32 percent jump in revenues, the increase in cost of crude outpaced the increase in prices of finished goods which reduced its gross profit rate to 8.5 percent this year.

“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 Ang said.

“We are well-positioned to fuel the government’s infrastructure program,” he added.