Petron Corporation, the country’s largest oil firm, recorded a Php3.87 billion consolidated income in the first half of 2021, a rebound from the Php14.24 billion net loss it suffered in the same period last year due to the COVID-19 pandemic.
Oil prices steadily rose 44% in the first semester from its December 2020 level with Dubai crude averaging $72/bbl in June. It said that the market was driven by the conservative stance of major oil producers in supply management, boosted by positive market sentiments as global vaccination progress and economies reopen.
Consolidated revenues of Petron’s operations in the Philippines and Malaysia went up 14% to Php174 billion in the same period from last year’s Php152 billion despite lower sales volume.
The firm’s overall sales volume was seven percent lower compared to the same period last year as the market continues to feels the impact of the pandemic. However, slowdown in sales to industrial accounts was offset by gradual improvement in the retail segments.
Meanwhile, local sales in the service stations increased by 12% while volumes for lubes significantly improved by almost 50%, reflecting the favorable performance of Petron’s products in both Philippines and Malaysia.
Petron registered Php8.95 billion operating income, from a loss of Php14.54 billion a year ago.
Despite suppressed refining margins, the oil giant resumed operations of its refinery in Limay, Bataan as crude prices steadily recover. Petrochemical prices likewise registered improvement due to high demand.
The company said its savings on operating expenses and financing costs helped the company’s financial performance in the first semester.
“Our financial performance in Petron, due in no small part to our recovery efforts and prudent use of resources, is proving to be a complete turnaround from last year which we hope to sustain as we continue to move past the pandemic slump,” Petron President and CEO Ramon Ang said in a statement.
In a separate disclosure to the Philippine Stock Exchange, Petron said its board has also approved the shelf registration of Php50 billion retail bonds, the first tranche of which is worth Php18 billion.