Increased consumption of petroleum products both in domestic and overseas markets drove earnings of Petron Corp. in the first quarter at a faster pace, sending net income 16 percent higher to P3.94 billion.
Petron, the listed oil company of conglomerate San Miguel Corp., said Tuesday combined sales volume of operations in the Philippines and Malaysia totaled 35.29 million barrels, 23 percent higher year-on-year. Higher production at Petron’s refinery in Bataan and Port Dickson supported that growth in sales volume.
Consolidated retail sales were up 11 percent driven by the sustained market recovery and Petron’s effective retail execution, while commercial volumes similarly rose 11 percent mainly on the substantial jump in jet fuel and liquefied petroleum gas sales as tourism, travel, leisure and food industries continued to rebound.
Sales volume under the umbrella of Petron’s Philippine operations, which includes the trading volume of its Singapore subsidiary, recorded a 28 percent growth to 22.72 million barrels. Export volumes also grew over 90 percent from the additional export volumes resulting from higher refinery production.
The international oil market continued to be affected by the escalating geopolitical conflicts in the Middle East. After declining by 17 percent in the last quarter of 2023 to close at USD77 per barrel in December, the price of benchmark Dubai crude climbed 9 percent to USD84 per barrel by March.
Petron said consolidated revenue for the first quarter rose 21 percent to P227.64 billion due to strong volume growth. Operating income also rose 21 percent to P10.17 billion.
“We have been strengthening our recovery and growth following the pandemic, thanks to our efficiency measures, volume strategy, and sustainability agenda. We are pleased to start the new year on a strong note, and we hope to sustain this momentum as we work towards new goals this 2024,” said Petron president and chief executive officer Ramon S. Ang.
Petron is strengthening its sustainability programs mainly on carbon sequestration, energy efficiency, water conservation, and waste management. The oil company is supporting reforestation and fish sanctuary projects.
