MANILA, Philippines - Petron Corp. saw its consolidated net income from its Philippine and Malaysian operations plunge to P432 million in the first half of the year from P6.04 billion during the same period last year.
Petron, the Philippines' biggest oil refiner, said its Philippine operations posted a P500 million net loss in the second quarter. The company also consolidated its Malaysian operations, which posted a net loss of P1.6 billion.
"The substantial margin contraction of both operations was due to the volatility in global oil markets," the company said.
The oil industry saw a decline in crude oil and finished product prices from April to the first week of July, resulting in 13 weeks of consecutive price rollbacks totalling P10.50 per liter for gasoline and P9 per liter for diesel.
Despite narrowing margins, Petron's sales in the Philippines went up 9% in the January to June period to 21.81 million barrels. The increase was attributed to "the slowdown of operations of other oil companies which reduced importations to limit inventory losses."
Petron's consolidated revenues went up 43% to P193.3 billion in the January to June period from P134.9 billion a year ago.
Excluding Petron Malaysia, Petron Philippines posted a net income of P1.99 billion in the first half.
"Oil refining and marketing companies around the world were not spared from the effects of the steep drop in crude oil and product prices. While we are still seeing some volatility, oil prices have begun stabilizing in the past few weeks as sentiments on the global economy improve," Petron chairman and CEO Ramon S. Ang said, in a statement.
"Despite these external challenges in the first half, we remain focused and followed through with our initiatives to help ensure Petron's growth and profitability over the long-term."
Petron is the oil and gas arm of diversifying conglomerate San Miguel Corp.