Petron Corp. reported a 25 percent decline in net income for the first nine months of the year, posting P7.1 billion, down from P9.5 billion in 2023, despite higher revenues driven by strong sales. 

In a stock exchange filing on Tuesday, the company attributed the drop to volatility in the international oil market and a correction in refining margins.

Petron posted a solid 12 percent increase in consolidated revenues for the first nine months, reaching P657.93 billion, up from P587.28 billion during the same period last year.

The company's revenue performance was driven by a 12 percent growth in sales volume, which reached 104.4 million barrels, compared to 93.6 million barrels in the first nine months of 2023. 

“Despite the challenges in the global market, our volume growth has been a key driver in achieving these strong revenue results. Our Philippine retail business and strategic marketing initiatives have also contributed to the growth,” Petron President and CEO Ramon S. Ang said. 

Ang also acknowledged that the weakening of refining margins has affected the company’s overall profitability. 

Petron's operations in the Philippines and its Singapore trading arm saw a combined 16 percent increase in sales volume, totaling 67.8 million barrels, while its Malaysian subsidiaries contributed a 4 percent rise to 36.6 million barrels.

Its local retail service station network was a significant contributor to the revenue increase, with a 7 percent rise in total retail sales. The company’s commercial and export trades also saw steady improvements, increasing by 7 percent and 1 percent, respectively.

The price of Dubai crude oil settled at $74 per barrel in the third quarter, down 17 percent from its peak of $89 per barrel in April. The decline was compounded by geopolitical tensions in the Middle East and weaker demand from China. 

Although the average price of Dubai crude for the first nine remained stable at $82 per barrel—on par with the same period in 2023—the decrease in refining margins significantly impacted Petron’s bottom line. 
The average regional refining cracks, a key indicator of refining profitability, dropped by nearly 30 percent compared to last year, reflecting the correction in crude prices to pre-conflict levels.