LISTED oil giant Petron Corp. logged a 56% decline in its net income to P1.8 billion for the primary quarter (Q1), as higher product costs and reduced refinery output, including the shutdown of its Malaysia facility and maintenance at its Bataan refinery, weighed on earnings.
For the primary three months, revenues rose by 27% yr on yr to P246 billion, the corporate said in an announcement on Tuesday, while operating income fell by 36% to P6.1 billion.
The corporate attributed the decline to higher product costs and reduced refinery output, including the continued shutdown of its Port Dickson Refinery in Malaysia after its product jetty was damaged by Tropical Storm Senyar in November last yr.
Petron said it has activated its business continuity plan while repairs are ongoing.
Meanwhile, the Petron Bataan Refinery in Limay underwent scheduled maintenance through the quarter, further affecting production.
Excluding trading transactions from its Singapore operations, Petron reported a 7% decline in sales volume to 25.7 million barrels within the Philippines and Malaysia.
The corporate said it reduced fuel exports to support growth in its domestic retail and business segments.
Petron President and Chief Executive Officer Ramon S. Ang said geopolitical developments within the Middle East have disrupted supply within the industry.
“As we work to administer its impact on our business, our predominant priority has been to secure adequate fuel supply and be certain that we will proceed to fulfill demand,” he said.
Since late February, Dubai crude prices surged to as high as $129 per barrel in March, from $68 per barrel within the previous month. For the primary quarter, Dubai crude averaged $86 per barrel, up 12% from a yr earlier, the corporate said.
Amid rising prices and provide concerns, Petron said it sourced crude and finished products from suppliers outside the conflict-affected areas.
“Because the Philippines’ sole remaining oil refiner, we recognize our responsibility to assist address the nation’s fuel challenges,” Mr. Ang said. — Sheldeen Joy Talavera