Petron profit hits P7.1 billion

MANILA, Philippines — Oil giant Petron Corp. saw its earnings in the first nine months decline amid political conflicts in the Middle East and sluggish demand in China.

In a regulatory filing yesterday, the company reported a 25-percent drop in net income to P7.1 billion from P9.5 billion on a yearly basis.

Revenues, on the other hand, improved by 12 percent to P657.93 billion from P587.28 billion due to sustained volume growth during the period.

“Our resilience, while repeatedly tested, continues to carry us through challenging market dynamics. We are grateful for the steady support of our customers and other stakeholders, allowing us to still deliver growth despite temporary setbacks,” Petron president and CEO Ramon Ang said.

Sales volume from domestic operations and the Singapore trading arm grew by 16 percent to 67.8 million barrels, while that from Malaysian units inched up by four percent to 36.6 million barrels.

Amid a challenging business environment, the company said it managed to achieve consistent improvements in retail sales as well as commercial and export trades.

“The international oil market remains uncertain as weak demand from China aggravates the continued impact of political tensions in the Middle East,” Petron said.

The price of benchmark Dubai crude settled at $74 per barrel in the third quarter, a continued drop from the $89 per barrel peak recorded in April.

Earlier, Petron successfully raised P16.83 billion as investors swarmed its follow-on offering of preferred shares.

During a listing ceremony in September, Ang said the company “remains a viable investment option.”

“We are committed to making sure that we continue to grow and succeed while being partners in nation-building,” he said