Petron Corporation reported a significant surge in net income for fiscal year 2023

by Charm Salazar · March 7, 2024

In 2023, Petron Corporation, a leading oil firm, reported a robust profit of P10.1 billion, marking a substantial increase driven by higher sales of jet fuel and liquefied petroleum gas (LPG).

The company’s consolidated net income for the year surged by 51% to P10.1 billion from P6.7 billion in 2022. Operating income also saw a significant rise of 60%, reaching P30.7 billion compared to P19.2 billion in the previous year.

Petron attributed its strong financial performance to increased sales in both local and international markets, with total sales reaching 126.9 million barrels, a 13% jump from the previous year’s 112.8 million barrels. In the Philippine market specifically, sales reached 79.5 million barrels, up from 68.5 million barrels in 2022.

The growth in sales was driven by a 50% increase in jet fuel sales, where Petron secured approximately 80% of the market share, as well as a 26% increase in LPG sales. The company’s overall market share grew by 24.5% in the first half of 2023, according to data from the Department of Energy.

Despite the positive sales performance, Petron’s revenues experienced a slight decline of 7% to P801 billion from the previous year’s P857.6 billion. This decline was attributed to a 15% drop in Dubai crude prices, averaging $82 per barrel compared to $96 per barrel in 2022.

Petron’s President and CEO, Ramon S. Ang, credited the company’s strategy to capture economic resurgence and minimize external pressures for its success. He emphasized Petron’s commitment to strengthening these efforts and further contributing to nation-building initiatives.

Additionally, Petron highlighted its fuel-marking program as a measure against petroleum product smuggling. This program involves injecting chemical identifiers into tax-paid oil products to prevent smuggling after taxes are paid on refined and imported gasoline, diesel, and kerosene.

News: Petron Corporation reported a significant surge in net income for fiscal year 2023