Net income fell 56 percent to P1.8 billion from P4 billion a year ago, while revenues rose 27 percent to P246 billion, it said in a stock exchange filing on Tuesday.
The decline was driven by disruptions within its own operations, which limited how much fuel the company could produce and sell.
Its Port Dickson refinery in Malaysia has been shut since November after storm damage to its jetty stopped fuel loading, while its Bataan refinery in the Philippines underwent maintenance, further reducing output during the quarter.
Tycoon Ang says priority is to the keep the economy moving
The outages came at a time when global oil markets were already under pressure, forcing the company to balance supply constraints with rising costs and steady demand.
“We know these are uncertain times, and we are committed to doing everything we can to sustain our operation and keep the economy moving,” said billionaire Ramon S. Ang, the president and CEO of Petron.
“As the Philippines’ sole remaining oil refiner, we recognize our responsibility to help address the nation’s fuel challenges. Together, we will navigate this crisis and alleviate the concerns of our fellow countrymen,” he added.
Less fuel, higher costs
With lower production, Petron sold fewer barrels, with volumes down 7 percent to 25.7 million. At the same time, crude prices surged, raising the cost of fuel.
“Margins were squeezed by higher product costs during the period with the absence of refinery production in Malaysia and reduced output in the Philippines,” Petron said.
Dubai crude jumped to $129 per barrel in March, nearly double February levels, and averaged $86 for the quarter, up 12 percent year-on-year.
This combination of lower output and higher costs pulled operating income down 36 percent to P6.1 billion.
Adjusting supply to stay stable
To keep supply steady, Petron sourced crude and finished products from outside the Middle East and used Bataan’s flexibility to process different types of oil.
The company also reduced exports and focused on supplying the Philippine market, where demand remains stable.
“The geopolitical developments in the Middle East have presented severe supply disruptions in our industry. As we work to manage its impact on our business, our main priority has been to secure adequate fuel supply and make sure we can continue to meet the demand,” Ang said.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
