Petron Corp. said Tuesday it sustained its positive performance with a consolidated net income of P3.87 billion in the first half, a remarkable rebound from the P14.24-billion net loss it suffered in the same period last year due to the pandemic.
Oil prices steadily rose in the first semester this year with Dubai crude averaging $72 per barrel in June, up 44 percent from its December 2020 level. The bullish market was driven by the conservative stance of major oil producers in supply management, boosted by optimistic market sentiments with the global vaccination rollouts and gradual reopening of economies.
With the continued recovery in prices, consolidated revenues of Petron’s Philippine and Malaysian operations in the first six months went up 14 percent to P174.13 billion from last year’s P152.36 billion despite lower sales volume.
The company’s overall sales volume was 7 percent lower than in the same period last year as the market continued to reel from the impact of the pandemic. The slowdown in sales to industrial accounts was partially offset by the gradual improvement in the retail segment. Local sales in the service stations climbed by about 12 percent while volumes for lubes significantly improved by nearly 50 percent, reflecting the favorable performance of Petron’s world-class products in both the Philippines and Malaysia.
Petron registered an operating income of P8.95 billion, from a loss of P14.54 billion a year ago.
While regional refining margins remained suppressed, Petron, the only oil refining company in the country, resumed operations at its refinery in Bataan as crude prices steadily recover. Prices of petrochemical have also registered significant improvement on the back of higher demand. Savings on operating expenses and financing costs also helped the Company’s financial performance in the first semester of 2021.
“Though we continue to face some challenges, we have seen tremendous progress this year. The increase in demand and continued improvement in international prices indicate that we are slowly but surely regaining lost ground as an industry. Our financial performance in Petron, due in no small part to our recovery efforts and prudent use of resources, is proving to be a complete turnaround from last year which we hope to sustain as we continue to move past the pandemic slump,” said Petron president and chief executive Ramon Ang.
Petron continues to be partner in the country’s recovery and growth. San Miguel Corp., Petron’s parent company, started its COVID-19 vaccination program for its 70,000 employees and extended workforce.
