The Philippines' largest oil company reported net income of P5.4 billion, down 44 percent from a year earlier, even as revenue surged 56 percent to P928.2 billion.
“Our diversified portfolio, financial discipline, and robust risk management equip us with the resilience needed to navigate these challenging times, while still keeping our business viable and competitive. Despite external pressures, our commitment to help ensure fuel security, meet the needs of our customers, and fulfill our responsibility as the nation’s energy backbone remains strong and unwavering,” Petron chair and CEO Ramon S. Ang said in a stock exchange filing on Tuesday.
Higher sales, tighter margins
Petron's operating income fell 28 percent to P19.1 billion as higher crude prices, import premiums and shipping costs squeezed margins despite stronger sales.
Benchmark Dubai crude averaged $92 per barrel during the nine months, up 29 percent from a year earlier, and climbed from $77 in July to $114 in September amid disruptions to Middle Eastern oil supplies.
Fuel demand holds up
Petron's consolidated sales volume rose 3 percent to 103.5 million barrels, supported by a 33-percent increase in sales from its Singapore-based trading business.
Retail sales volumes grew 16 percent in the Philippines and 2 percent in Malaysia, although combined volumes across the two markets declined 3 percent to 82 million barrels due to reduced refinery production.
Malaysia operations
The company's Malaysian refinery also faced weaker margins because of operating restrictions following damage to its product jetty at Port Dickson, which handles shipments of refined fuel.
Petron expects the replacement jetty, damaged during Tropical Storm Senyar, to begin operating in the first quarter of 2027.
Restoring the facility would help ease refinery constraints as Petron continues expanding its retail network and managing higher fuel supply costs.
—Edited by Miguel R. Camus
