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Ramon Ang-led Petron Corporation will proceed cautiously this year, even as the company’s net income edged higher in the first three months of 2025.
In a statement released on Tuesday, May 6, Petron reported a net income of ₱4.03 billion for the first quarter of this year, a modest 2.5 percent increase compared to the ₱4.03 billion figure from the same period in 2024.
This slight improvement was attributed to the expansion of its retail and commercial sales segments.
“Retail sales in the Philippines saw a 14 percent growth, validating the company’s strategy to attract more motorists by providing an enhanced overall customer experience. Commercial sales also registered a slight increase, primarily driven by higher sales of jet fuel and LPG,” the company detailed.
However, this positive impact on the company’s financial performance was partially offset by lower export sales volumes.
“The combined sales volume from its Philippine and Malaysian operations reached 27.6 million barrels, a five percent decrease from the previous year,” it explained.
Petron’s consolidated revenues experienced a 15 percent drop, from ₱227.64 billion in the first quarter of last year to ₱194.38 billion. This decline was primarily due to lower oil prices and reduced trading activity from its Singapore unit.
“The international oil market absorbed the initial impact of US tariffs on major trade partners, ongoing geopolitical tensions in the Middle East, and the announcement by OPEC+ members regarding their plans to unwind voluntary production cuts,” the company elaborated.
At the beginning of the year, the benchmark Dubai crude oil price reached $80 per barrel, but by March, it had fallen to $72 per barrel. Throughout the first quarter, the average price of Dubai crude was around $77 per barrel, five percent lower than the average in the same period last year.
“Regional refining margins during the period continued to contract from their 2024 levels, declining further by more than 40 percent,” the company added.
Given the market volatility, Petron president and chief executive officer Ramon S. Ang stated that the company is adopting a cautious approach this year, focusing on enhancing efficiency and maintaining strong performance amidst global challenges.
“We continue to operate in a volatile and unpredictable market. As we navigate through these headwinds, we remain committed to improving our efficiency and strengthening our performance to maintain our market leadership and further our role as a nation-builder,” he affirmed.
Petron had previously indicated potential market headwinds after its 2024 net income decreased by 16 percent, largely due to challenges in its Malaysian operations following the shutdown of the Port Dickson refinery in the fourth quarter.
Adding to these concerns, geopolitical tensions, particularly in the Middle East, along with fluctuating demand from China, have put pressure on global oil prices.
