Consolidated revenues increased by 43% to P193.3 billion from P134.9 billion in the first half of 2012 with the consolidation of Malaysian operations.
Excluding Petron Malaysia, Petron Philippines posted a net income of P1.99 billion in the first half.
The industry saw a steep and continuous decline in crude oil and finished product prices from April to the first week of July. In the Philippines, this led to 13 weeks of consecutive price rollbacks in local pump prices totaling P1.50/li for gasline and nearly P9.00/li for diesel. Margins narrowed as higher-cost inventory were sold at lower prices.
The precipitous drop in prices was caused by the Eurozone crisis and the slowdown in the economies of the United States and China.
While margins were contracting, Petron's total domestic sales in the Philippines grew by 9% in the first half of 2012 to 21.81 million barrels. The company attributed this jump to, among others, the slowdown of operations of other oil companies which reduced importations to limit inventory losses. During this period, the company continued to serve volumes displaced by reduced competitive activity.
"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, "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."
The company said it continued to push its network development program to establish service stations even in far-flung areas. Currently, there are about 2,000 Petron service stations nationwide - the largest network by far - and hundred more in the pipeline. Overall, Petron remains the undisputed industry leader in the country with a 38.1% share of the total market as of May 2012.
In Malaysia, the company has begun converting Esso and Mobil service stations to the Petron brand. Petron aims to rebrand 560 service stations over the next few years. The new stations feature improved facilities and personalized services aimed at total customer satisfaction.
The company's $2-billion Refinery Expansion Project (RMP-2) at its 180,000 barrel-per-day Bataan Refinery remains on track and is expected to be onstream in the last quarter of 2014. The project optimizes the Bataan Refinery by converting all fuel oil production into higher margin white products and petrochemicals.
"We believe we have the right initiatives in place and remain optimistic of the company's prospects," Mr. Ang concluded.