Petron Corporation reported a net income of P9.7 billion for the first nine months, up 37% from last year’s P7.1 billion, driven by higher domestic sales, lower costs, and improved plant efficiency.
The homegrown oil company and the Philippines’ only remaining refiner delivered growth despite an international oil market pressured by geopolitical tensions, shifting policies, and lifting of supply cuts, all of which significantly impacted oil prices. Dubai crude remained rangebound at USD70 per barrel in the third quarter, following a drop to USD64 per barrel in May from USD80 per barrel in January this year. The regional pricing benchmark averaged USD71 per barrel from January to September, marking a 13% decline compared to last year.
For the first nine months, Petron achieved robust sales, reporting a combined sales volume of 84.7 million barrels for the Philippines and Malaysia, a 3% increase from 2024’s 82.6 million barrels. This growth was largely driven by the 11% improvement in Philippine retail sales as Petron continued to corner the bigger share of the market.
The growth in domestic volumes, together with higher productivity at Petron’s refineries in Limay, Bataan and Port Dickson, Malaysia, helped minimize the impact of weak regional refining cracks, which dropped 11% in the first nine months.
Due to lower international prices, revenues for the first three quarters decreased 10% to P594.9 billion from P657.9 billion the previous year.
Despite the external challenges, Petron sustained its profitability with an operating income of P26.6 billion, 20% higher than last year’s P22.2 billion. Furthermore, its net income growth further underscores the company’s resilience in navigating industry headwinds.
“As a refiner, we’ve had to balance financial resilience with delivering value across every aspect of our business. This year, the market has presented even greater challenges, yet we’re proud of how we’ve stood against external pressures and even competition. Our performance over the past three quarters has been a testament to this, and we remain optimistic about maintaining this momentum through the rest of the year,” said Petron President and CEO Ramon S. Ang. (30)
CAUTIONARY NOTE: Statements in this release relating to future plans, projections, events, or conditions are forward-looking statements. Actual results, including project plans, timing, and capacities, could differ materially due to changes in long-term oil or gas prices or other market conditions affecting the oil and gas industry; political events or disturbances; the outcome of commercial negotiations; changes in technical or operating conditions; and other factors.