Petron Corp., the oil company of San Miguel Corp., said total revenue in the first nine months of the year rose by 12 percent year-on-year to P657.93 billion, driven mainly by a significant increase in sales volume.
The volume of oil products sold was up 12 percent to 104.4 million barrels on the back of a 16 percent growth in sales volume in Philippines. In Malaysia, sales volume was up by 4 percent.
Retail operations in the Philippines also contributed significantly to overall revenue growth, with total retail sales up by 7 percent. This growth was attributed to robust brand presence and strategic marketing initiatives.
Petron said commercial and export trade sectors showed consistent improvements, growing 7 percent and 11 percent, respectively.
The company pointed out that the positive results were achieved despite a challenging global market, underscoring its ability to adapt and thrive under difficult conditions.
Petron said that the international oil market continued to present obstacles, with market conditions kept volatile by weak demand from China and ongoing geopolitical tensions in the Middle East.
The price of Dubai crude fell sharply in the third quarter, dropping by 17 percent from its peak in April, settling at USD74 per barrel. Despite the decline in crude prices, the average price of Dubai crude for the first nine months of 2024 remained stable at USD82 per barrel, similar to the same period in the previous year. Nevertheless, regional refining margins tracked the drop in crude prices, with refining cracks falling nearly 30 percent compared to the previous year, placing pressure on Petron’s profitability.
Despite these challenges, Petron posted an operating income of P22.3 billion, down from P27.0 billion in the same period last year. The sharp decline in refining margins had a notable impact on performance, contributing to a 25 percent decrease in net income, which fell to P7.1 billion from P9.5 billion in 2023.
Petron president and chief executive officer Ramon S. Ang acknowledged the company’s resilience amid these difficult market conditions, expressing gratitude for the continued support of customers and stakeholders. He noted that, despite the setbacks, Petron managed to maintain growth and stability.
In a positive development, Petron successfully listed its preferred shares on the Philippine Stock Exchange in September, coinciding with the company’s 91st anniversary. The P16.83 billion raised from this offering, which included a base offer of P13 billion and an oversubscription of P3.83 billion, reflected strong investor confidence in the company.
