Oil refining giant Petron Corp. is looking to bounce back in the second semester as it pursues its network expansion program in the Philippines and Malaysia.
Petron saw its net income plunge 72% to P2.6 billion in January to June amid the slump in regional refining margins that penalized Philippine operations by as much as P5 billion during the period.
Aggregate revenues slid 7% to P254.8 billion as the implementation of the second tranche of the tax reform law squeezed Petron’s margins.
The Tax Reform for Acceleration and Inclusion Law raised fuel taxes to an average of P6.75 per liter equivalent to over P15 billion excise taxes for the first half.
Petron Malaysia, meanwhile, grew its sales by 4%
“These setbacks are just temporary and are all part of the business. We remain optimistic for the second half of the year given signs of modest recovery from gasoline and petrochemical margins recently seen in the market,” said Petron president and CEO Ramon S. Ang.
Petron opened 72 gas stations in the Philippines and 24 outlets in Malaysia in the first half to ensure its continued growth.