Petron doubles first half profit to P7.7B

San Miguel Corp.’s oil refining unit Petron Corp. has emerged stronger than ever from the pandemic with its first half net income doubling to P7.7 billion on robust growth in sales.

Consolidated revenues grew more than two-fold to P398.52 billion, driven by increased sales volume and prices amid higher demand.

Sales in both the Philippines and Malaysia including Petron’s trading subsidiary in Singapore sold a total of 51.4 million barrels during the first half, 34 percent higher than the previous year.

“Our post-pandemic transition has so far been marked by steady growth, particularly in segments where we suffered major setbacks earlier during this crisis. We move forward with hope and optimism as we roll out projects that will not only yield optimal returns for the company but, more importantly, lead towards greater sustainability and create economic opportunities for more sectors,” said Petron president and CEO Ramon S. Ang.

Commercial sales posted the highest increase as more industries, including aviation travel, rebounded from the pandemic’s impact.

The retail business increased by nearly 30 percent, fueled by the strong sales of its premium gasoline and diesel fuels. Sales of lubricant products, Jet-A1, LPG, and petrochemicals likewise showed strong growth compared to the previous year.

Consolidated revenues came in at P398.52 billion, surpassing last year’s P174.13 billion, driven by increased sales volume and prices. Dubai crude averaged $102 per barrel due to geopolitical conflicts.

Lower marketing margins partly offset these gains as a result of escalating price competition in the market. In addition, the company incurred higher financing costs due to increased working capital requirements.

Petron owns a combined refining capacity of 268,000 barrels per day and produces a full range of world-class fuels and petrochemicals. It operates about 40 terminals in the region and has around 2,800 service stations.