Petron Corporation continued to report strong revenues in the first nine months of the year despite challenges in the international oil market.
Consolidated revenues grew 12% to P657.93 billion from P587.28 billion in the same period last year. This was driven by the company’s sustained volume growth in January to September 2024 of 12% to 104.4 million barrels from 93.6 million barrels in 2023.
Petron’s sales volume from its Philippine operations and Singapore trading arm posted a combined 16% increase to 67.8 million barrels, while sales volume from the company’s Malaysian subsidiaries rose 4% to 36.6 million barrels.
The company’s service station operations in the Philippines fueled the consolidated 7% increase in total retail sales driven by Petron’s strong brand attributes and strategic marketing efforts. Sales from the company’s commercial and export trades also showed consistent improvements at 7% and 11%, respectively.
The international oil market remains uncertain as weak demand from China aggravates the continued impact of political tensions in the Middle East. The price of benchmark Dubai crude continued to drop in the third quarter, settling at US$74 per barrel which is down 17% from its US$89 per barrel peak in April this year. However, despite the downward trend, Dubai crude averaged US$82 per barrel for the first nine months of 2024, at par with the same period last year. Meanwhile, regional refining cracks tracked the continued correction in crude prices to pre-war levels affecting the margins of Petron. Average refining cracks declined by close to 30% from a year ago.
Amid this challenging business environment, Petron managed an operating income of P22.3 billion in the first nine months from P27.0 billion in the same period last year. The strong performance of the company’s marketing segment was weighed down by the correction in refining margins resulting to a net income for the nine-month period of P7.1 billion from P9.5 billion in 2023.
“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,” said Petron President and CEO Ramon S. Ang.
In time for its 91st anniversary in September, Petron listed at the Philippine Stock Exchange (PSE) the P16.83 billion the company raised from its latest preferred shares offering. The total amount reflects the P13 billion base offer and oversubscription of P3.83 billion, underscoring the strong demand for Petron’s preferred shares.
Petron also recently launched the Tapat Sa’Yo campaign. The campaign consolidates Petron’s competitive advantage in terms of value for money, product and service quality, and promos and rewards, testifying to the homegrown company’s commitment to put its customers first.